Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

China EV startups say May sales up, post-lockdown output constrained

Published 2022-06-01, 11:18 p/m
© Reuters. People visit the booth of Chinese electric vehicle (EV) maker Li Auto during a media day for the Auto Shanghai show in Shanghai, China April 20, 2021. REUTERS/Aly Song/File Photo
SSEC
-
CHNA
-
LI
-

(Reuters) - China’s electric vehicle start-ups reported stronger sales for May and forecast continued gains for June as supply chains and output begin to recover from the disruption of COVID-19 lockdowns in Shanghai and other cities.

Li Auto Inc reported a May sales gain of 166% from a year earlier to 11,496 vehicles on Wednesday. Xpeng (NYSE:XPEV) Inc posted a gain of 78% with 10,125 deliveries. Nio Inc delivered 7,024 EVs, up 5% from a year earlier.

All three companies cautioned that output had not yet fully recovered, constrained by parts supply issues. Shanghai, a key production hub, ended its two month lockdown for most residents on Wednesday.

Industry-wide sales data for May, including for the EV leaders in China, BYD and Tesla (NASDAQ:TSLA), are expected by next week.

China has announced a range of measures to support auto sales and the sputtering economy, including a halving of the tax on purchases of small-engine cars with sticker prices of up to about $45,000. In a report issued Wednesday, Fitch said it expects sales for the world's largest auto market will climb 3.9% this year after 3.8% growth in 2021.

But Fitch also warned of risks: “The local market faces significant challenges, ranging from a limited supply of new vehicles, elevated unemployment and weakness in the local construction and real estate sectors.”

© Reuters. People visit the booth of Chinese electric vehicle (EV) maker Li Auto during a media day for the Auto Shanghai show in Shanghai, China April 20, 2021. REUTERS/Aly Song/File Photo

Li Auto cautioned that shipments from suppliers around Shanghai remained disrupted. “We continue to encounter challenges due to parts supply shortages,” Li Auto President Yanan Shen said in a statement.

Xpeng said it had restarted two shifts at its plant in southern China and was working to accelerate deliveries. Nio said it expects to increase output in June after recent moves to end lockdown restrictions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.