Chinese electric car makers Neo, Xpeng and Li Auto are facing a number of headwinds, including higher raw material costs and the revival of the Covid in China. However, they all posted a wave in the March delivery volume.
Kilai Shen | Bloomberg | Getty Images
Chinese electric vehicle start-ups Nio, Xpeng and Li Auto have faced several challenges in the past few weeks, but delivered more cars in March than in February.
Chinese electric car makers are battling the rise of coveted cases in China, which threaten to disrupt production and supply, while raw material prices continue to rise. This has forced several auto companies from China’s Tesla to Xpeng and Li Auto to raise the prices of their cars.
The share prices of the three companies, Nio, Xpeng and Li Auto, were sharply higher in US pre-market trading.
Of the three, Xpeng delivered the most electric cars in March. The Guangzhou-based automaker said it delivered 15,414 vehicles in March, up 148% from February. In the first quarter, Xpeng delivered 34,561 vehicles, an increase of 159% year on year.
Xpeng’s P7 flagship sedan has surpassed 9,000 deliveries, a monthly record.
“The company received new orders in 2022 after growing brand awareness for its strong Q1 delivery results and high demand for its smart EV products, as well as expedited delivery of its large order backlog from 2021 and completion of technology upgrades at its Zhaoqing plant in February. An Xpeng spokesman told CNBC.
Zhaoqing in southern China is one of Xpeng’s main manufacturing facilities.
Chinese electric vehicle start-up Li Auto announced a return to its car supply in February, but said production had been affected by the resurgence of the Kovid case in China.
US and Hong Kong-listed Li Auto delivered 11,034 of its Li ONE Sports Utility Vehicle (SUV) in March, up 31% from February. In the first quarter, Lee Auto said it delivered 31,716 vehicles, an increase of 152.1% year-on-year.
However, the company said production had been affected “due to a shortage of some auto parts due to the recent revival of COVID-19 cases in the Yangtze Delta region,” which includes the area where Lee’s auto factory is located.
Last month, Li Auto said it would increase the price of its Li ONE car from 338,000 Chinese yuan ($ 53,147) to 349,800 yuan, effective April 1.
As competition continues in China’s electric vehicle market, Li Auto is set to release its next car, the L9 SUV, on April 16.
Neo said it delivered 9,985 vehicles in March, up 62.8% from February. The company delivered 25,768 vehicles in the first quarter of 2022, an increase of 28.5% over the year. It was a quarterly delivery record for electric car makers.
Of the three, Neo is the only company that has not yet raised the price of its car.
Next month, Nio will debut its new SUV called the ES7.