China’s Auto Sales Increased 32% Y/Y in August, Driven Primarily by EVs: Top Stocks to Watch

China's Auto


Stocks to Watch: Tesla (NASDAQ:TSLA), Li Auto (HKG:2015), Xpeng (NYSE:XPEV), Nio (NYSE:NIO)

Figures from China’s Association of Automobile Manufacturers (CAAM) show China’s auto sales increased 32.1% year over year to hit 2.38 million units by August 2022. China’s auto sales decreased 1.5% from July 2022 to July 2023 as a result of production delays caused by power outages and decreased showroom traffic in China as a result of the extreme heat wave.

The first eight months’ China’s auto sales were 1.7% higher than they were during the same time in 2021.

New energy vehicle sales in August hit a record high of 666,000 units, up 107.48% from the 321,000 units sold in August 2021 and up 12.31% from the 593,000 units sold in July.

This suggests that the penetration of NEVs in China increased by 3.4 percentage points in August to a record 27.9%, up from a previous 24.5%. Sales of battery electric vehicles increased by 92.9 percent year over year to 522,000 units, plug-in hybrid sales increased by 160% to 144,000 units, and sales of fuel cell vehicles increased by 570% to 255 units.

China’s exports of vehicles increased by 65% over the previous year, with EVs making up 27% of those exports. China has tried to boost auto demand in the face of a faltering economy by offering incentives like a lower sales tax for small-engine vehicles and subsidies to encourage the trade-in of gasoline vehicles for electric ones.

China’s Auto Stocks to Watch

However, other cities, such as Shenzhen and Chengdu, have implemented new lockdowns as Beijing continues to adhere to its “dynamic zero” COVID strategy to break every chain of transmission. Tesla (NASDAQ:TSLA), Li Auto (HKG:2015), Xpeng (NYSE:XPEV), and Nio (NYSE:NIO) all saw gains in pre-market trading.

Tesla delivered 76,965 Chinese-made automobiles in August 2022, nearly tripling its sales from the previous month (28,217 units were sold in July 2022). With 173,977 vehicles shipped in August, peer BYD (OTCPK:BYDDF) took the lead among electric vehicle manufacturers. 10,677, 9,578, and 4,571 automobiles were delivered by Nio (NIO), Xpeng (XPEV), and Li Auto (LI), respectively.

Featured Image-  Megapixl @Tonyv3112

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