Tag Archives: BYD Co Ltd

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Xpeng electric car deliveries drop in October to half of Nio’s

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Xpeng said deliveries of its newly launched G9 SUV surged in October from September, despite a drop in the brand’s overall monthly deliveries.

China News Service | China News Service | Getty Images

BEIJING — Chinese electric car startup Xpeng delivered about half the number of cars that rivals Nio and Li Auto did in October, according to company statements Tuesday.

While the two other startups reported monthly deliveries of more than 10,000 each, Xpeng said it delivered just 5,101 cars — a third-straight month of decline.

Xpeng shares fell by 3% in U.S. trading overnight. Nio’s rose by 0.4% and Li Auto shares jumped by 6.9%.

China’s electric car market is highly competitive. Older automakers BYD and Tesla lead monthly deliveries by far, while new entrant Huawei claims its Aito brand has topped the 10,000-a-month mark less than a year since launch.

Deliveries of Xpeng’s best-selling model, the P7 sedan, halved from September to October, with just over 2,100 units delivered last month. The company’s newly launched G9 SUV saw deliveries surge from 184 units in September to 623 units in October.

Xpeng said mass deliveries of the G9 began on Oct. 27. The company has said it expects the new model to become its best-selling car next year.

Nio

Nio, which has targeted a higher price range for both SUVs and sedans, said it delivered 10,059 vehicles in October. That marked a slight decline from September, but marked a fifth-straight month of deliveries that topped 10,000.

“Vehicle production and delivery were constrained by operation challenges in our plants as well as supply chain volatilities due to the COVID-19 situations in certain regions in China,” Nio said in a press release.

The company said its October deliveries included vehicles sold in Europe, but not those offered under a local subscription program.

Li Auto

Li Auto delivered 10,052 vehicles in October. Since May, the company has delivered more than 10,000 cars every month, except in August.

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After having only one model on the market since 2019, Li Auto has launched three new models in the last few months — the L9 which began deliveries in August, the L8 which is set to begin deliveries this month and the L7 which is set to reach consumers early next year.

Unlike Xpeng and Nio, Li Auto’s vehicles are not purely electric as they come with a fuel tank to charge the battery and extend driving range.

Among the three companies, Li Auto’s U.S.-listed shares have held up the best in a year of broad market declines. The stock is down by about 55% so far this year, while Nio shares have dropped by 69% and Xpeng is down by 87%.

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BYD shares jump after Chinese EV maker forecasts surging profits

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Warren Buffett-backed BYD said it expects a more than 300% jump in third-quarter profit. Despite headwinds including a resurgence of Covid in China, rising material costs and a slowing economy, BYD has remained fairly resilient.

Nathan Laine | Bloomberg | Getty Images

Shares of Chinese electric carmaker BYD rose Tuesday after the company forecast a huge jump in profit for the third quarter.

Late Monday, the Warren Buffett-backed firm said net profit in the three months to Sept. 30 is estimated to be between 5.5 billion yuan to 5.9 billion yuan ($764.5 million to $820 million), a rise of 333.6% to 365.11% versus the same period last year.

BYD’s Hong Kong-listed shares were 5.6% higher in afternoon trade.

“In the third quarter of 2022, despite the complex and severe economic situation, the spread of the pandemic, extreme high temperature weather, high commodity prices and other unfavorable factors, the new energy vehicle industry continued to accelerate its upward trend,” BYD said in a statement.

The company said sales volume of its new energy vehicles, which include electric cars, “continued to reach record highs” helping boost market share and “driving significant improvement in earnings and effectively relieving the pressure on earnings brought by the rising prices of upstream raw materials.”

A number of electric carmakers from Tesla to BYD to have been grappling with the rising cost of raw materials, such as lithium, that are critical to batteries.

From the start of the year to the end of September, BYD has sold 1.18 million new energy vehicles, trumping Tesla’s figure of just over 900,000 deliveries.

BYDs various models are among the top-selling new energy vehicles in China which is the world’s largest electric car market.

While the Shenzhen-headquartered company has remained fairly resilient in the face of headwinds such as a resurgence of Covid in China and a slowing economy, its smaller rivals have faced difficulties.

In August, Chinese electric car start-up Xpeng reported weak vehicle delivery guidance for the third quarter.

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China EV maker BYD shares fall after Warren Buffett cuts stake

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Hong Kong-listed shares of BYD tumbled on Wednesday after Warren Buffett’s Berkshire Hathaway trimmed its stake in the Chinese electric car maker — and one fund manager said this could be a warning sign of more to come.

The conglomerate slightly reduced its shares from 20.04% to 19.92%, according to a filing on the Hong Kong exchange. Berkshire sold 1.33 million shares of BYD for about $47 million — the conglomerate now owns 218.7 million shares, the filing showed.

“This is a common trend for investors starting to take cash from the market,” Yang Liu, Atlantis Investment’s chairperson and chief investment officer, told CNBC’s “Street Signs Asia” on Wednesday.

“Maybe we’ll see more.”

BYD shares plunged more than 12% during Wednesday’s session in Hong Kong, and was the worst performer on the Hang Seng Index, according to Refinitiv data. The stock has jumped more than 600% in the past 10 years.

Earlier this week, the company reported strong numbers for the first half of 2022 with its net income for the period totaling 3.6 billion yuan ($521 million), tripling from a year earlier.

When asked about what this means for the Chinese electric vehicle market, Liu said Berkshire’s latest move could be “warning signs that the market may be [coming] to a big correction.”

“There is too much uncertainties and I think [Buffett] got a little bit nervous,” she said. “Maybe this recession in front of us for the U.S. economy and also a weaker Chinese consumption altogether brings down investors’ confidence to a larger scale.”

Room for more China stimulus

Looking ahead to China’s upcoming National People’s Congress in October, Liu said China has room for more government stimulus measures, and said the current package was “not enough.”

Last week, China’s State Council announced a slew of stimulus measures worth tens of billions of dollars, as the country seeks to boost its economy which has been battered by Covid lockdowns and a real estate crisis.

“There is room for government to help the economy and push up confidence,” the fund manager said.

She said that people will be looking for clues on the government’s outlook for growth “to see what’s going on.”

“It will give us a big indication [on] where China’s economy will go,” including the direction of the government’s zero-Covid policy and what measures will be taken to tackle low consumption, she said.

“The economy needs confidence to believe, it’s now all about the confidence,” Liu added.

— CNBC’s Yun Liu contributed to this report.

Correction: This story has been updated to correct the year for which BYD reported earnings.

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UBS on how to invest in EVs, rising electric vehicle adoption

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Here’s the full list of the best-selling electric cars in China for 2021

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A Neta (Nezha) V electric car is on display at the Hozon Auto stand during an auto show in Tianjin, China, on Oct. 4, 2021.

VCG | Visual China Group | Getty Images

BEIJING — Tesla and BYD remained by far the market leaders in China’s electric car market in 2021, while new competitors emerged against smaller rivals like Nio, according to the China Passenger Car Association.

Budget electric car Hongguang Mini retained the best-selling spot — more than tripling sales last year to 395,451 units, the association data showed Thursday.

But more expensive cars from Tesla and BYD dominated the top vehicles sold in the new energy vehicle category, which includes battery-powered and hybrid cars.

Here’s the list of top 15 best-selling new energy passenger cars, including SUVs, in China for 2021:

1. Hongguan Mini (SAIC-GM-Wuling)
2. Qin (BYD)
3. Model Y (Tesla)
4. Model 3 (Tesla)
5. Han (BYD)
6. Song (BYD)
7. Li One (Li Auto)
8. eQ (Chery)
9. Benben EV (Changan)
10. Aion S (GAC Motor spin-off)
11. Ora Black Cat (Great Wall Motor)
12. P7 (Xpeng)
13. Tang (BYD)
14. Ora Good Cat (Great Wall Motor)
15. Nezha V (Hozon Auto)

Three BYD models ranked among the top 10, with the BYD Qin sedan reaching sales of 187,227 units — and outselling all Tesla models.

Close behind the BYD Qin was Tesla’s Model Y, which launched in China last year and leaped to the top of the high-end new energy SUV category with 169,853 units sold in 2021, according to the association.

Tesla’s Model 3 came next, with 150,890 units sold last year, up nearly 10% from 2020, the data showed.

Some in China’s auto industry have cast doubt on the accuracy of the association’s figures. But the numbers can reflect broader trends.

Li Auto’s hybrid Li One made the top 10 list of new energy passenger cars, while Xpeng’s P7 sedan made the top 15.

A relatively newcomer to the market, the low-priced, fully electric Nezha V SUV took 15th place, and pushed three far more expensive Nio models even lower in the sales rankings.

Nezha is a brand under start-up Hozon Auto, and closed a 4 billion yuan ($625 million) funding round in the fourth quarter. Prices for the Nezha V start at 62,900 yuan ($9,722) after subsidies. In comparison, Nio’s ES6 SUV starts at 346,660 yuan after subsidies.

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Chinese electric car start-up Nio reveals a new sedan AR VR glasses

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Nio’s et5 electric sedan is set to begin deliveries in Sept. 2022.

Nio

BEIJING — Chinese electric car company Nio revealed Saturday a new sedan and custom augmented reality (AR) glasses that reduce the need for in-car screens.

Augmented reality is a technology for imposing digital images over the real, physical world. For cars, the tech can let drivers keep their eyes on the road without having to glance down at a dashboard.

Nio said it partnered with Chinese augmented reality start-up Nreal for the AR glasses that go with its new sedan, the ET5.

The electric car is set to begin deliveries in September 2022, with pre-subsidy prices starting at 328,000 yuan ($51,250) for models that come with a battery. The AR glasses are not included and must be bought separately, according to the company.

Nio CEO William Li announces on Dec. 18, 2021, custom AR glasses made with Chinese start-up Nreal.

Evelyn Cheng | CNBC

The ET5 is Nio’s second sedan to come to market. The company’s first sedan, the ET7, was revealed in January at a higher pre-subsidy starting price of 448,000 yuan, but hasn’t begun deliveries yet.

Deliveries of the ET7 are set to begin on March 28, 2022, William Li, Nio’s founder, chairman and CEO, said Saturday at the company’s annual “Nio Day” event.

Tesla, BYD, Xpeng and other electric car companies in China already sell sedans which have proved popular with locals.

Nio said its deliveries bounced back in November from a low of 3,667 cars in October, bringing the total for the first 11 months of the year to 80,940 vehicles. Its ES6 and EC6 SUVs were among the top 10 new energy SUVs sold in China this year through November, according to the China Passenger Car Association.

Nio plans to enter Germany

Next year, the electric car company plans to bring its products and services to Germany, the Netherlands, Sweden and Denmark, Li said. By 2025, the company aims to reach users in more than 25 countries and regions, he said.

Nio opened a flagship store in Oslo, Norway, this year and began delivering vehicles to the electric car-friendly country, where Chinese rivals Xpeng and BYD have also shipped cars.

In early November, Li had said on an earnings call the company planned to enter five other countries in Europe next year in addition to Norway.

Nio’s ET5 electric sedan offers six options for interior colors, including the seatbelt.

Evelyn Cheng | CNBC

AR/VR investments

Nio’s investment arm Nio Capital is an investor in Nreal. The custom glasses for the ET5 sedan can project an effective screen size of 201 inches at 6 meters, according to a release.

Nio also announced Saturday that it has jointly developed virtual reality glasses with Nolo, another Chinese start-up backed by Nio Capital. Pricing and other details about availability weren’t disclosed.

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Chinese consumers pick favorite electric cars from China, US, Germany

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Stephan Wollenstein, CEO of Volkswagen China, presents the new ID.6 Crozz electric car during the Shanghai International Automobile Industry Exhibition on April 19, 2021.

Hector Retamal | AFP | Getty Images

BEIJING — When it comes to their favorite electric car brand, Chinese consumers’ top choice is Warren Buffett-backed BYD, according to a survey by Bernstein.

Elon Musk’s Tesla ranks second, and third on the list is Germany’s Volkswagen, Bernstein said. The firm cited the latest results from a regular survey of Chinese consumers in the third quarter of the last few years. This year’s survey, released Thursday, covered about 1,600 respondents.

Most of those surveyed lived in China’s larger cities, with an average age of 32 and monthly income of about 19,000 yuan ($2,969), the research firm.

Nearly half the respondents said they will consider buying an electric vehicle for their next car purchase, the report said, noting consumer preferences for lower operating costs, a better driving experience and environmental friendliness.

Intent to buy an electric car from a Chinese start-up like Nio or Xpeng doubled this year to about 9.5% of those surveyed, up from around 5% for the last few years.

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Chinese start-ups ranked first in the “upper mass & premium” segment of the electric car market, which covers cars costing at least 150,000 yuan ($23,437). The next most-favored in that segment was Tesla, followed by premium German brands like BMW and Audi, the survey found.

But across cars of all categories, premium German brands ranked first, followed by Japanese brands Toyota, Honda, and Nissan, and Chinese brands including BYD and Geely, the report said. Electric car start-ups ranked sixth in this category.

China is the world’s largest auto market and many European car companies are making the country the starting point in their push into electric vehicles.

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Chinese electric carmaker BYD sees August sales surge more than 300%

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BYD’s Han electric car, pictured here at the 2021 Shanghai auto show, is one of the most popular new energy vehicles in China.

Evelyn Cheng | CNBC

GUANGZHOU, China — BYD sold 61,409 new energy vehicles in August, more than four times the amount sold a year ago, as demand for electric cars continues to rise in the world’s largest auto market.

That figure was nearly evenly split between sales of battery electric vehicles and so-called plug-in hybrids.

It was also a rise from the 50,492 cars sold in July. BYD shares rose 5.5% in morning trade in Hong Kong.

BYD, which is backed by Warren Buffett’s Berkshire Hathaway, is one of the biggest electric vehicle makers in China. But a number of start-ups including Nio, Li Auto and XPeng have looked to challenge it. Still, these three are smaller at the moment and all delivered under 10,000 cars in August.

BYD’s figures focus on sales volumes while Nio, Li Auto and XPeng released delivery numbers, so the comparison is not like-for-like, but it does indicate the scale of the respective companies.

The auto industry globally has been battling with two major issues — the continuing pandemic and a shortage of semiconductors that go into cars.

BYD did not provide any commentary around the August numbers. But in its half year results released last month, the company said “profitability is affected to some extent by factors including rising prices of raw materials such as bulk commodities.”

Despite the issues affecting the auto industry, demand for electric vehicles continues to climb in China, as the government pushes development of the sector.

China is expected to sell 1.7 million new energy vehicles in the first eight months of this year, a rise from 600,000 cars in the same period of 2020, according to a Reuters report of comments from the vice minster of China’s Ministry of Industry and Information Technology made on Saturday.

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Warren Buffett-backed BYD all-electric car sales below pre-pandemic

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BYD’s Han electric car, pictured here at the 2021 Shanghai auto show, is one of the most popular new energy vehicles in China.

Evelyn Cheng | CNBC

BEIJING — Chinese automaker BYD sold fewer all-electric passenger cars in the first six months of this year than the same period in 2019, before the coronavirus pandemic.

The company, backed by U.S. billionaire Warren Buffett, said Monday it sold 20,016 all-electric passenger cars in June for a total of 93,440 units in the first half of the year — double the year-ago figure.

But that growth still fell short of sales of 95,779 all-electric passenger cars in the first six months of 2019.

In June, BYD also sold 84 more hybrid-powered passenger cars than all-electric ones. That contrasted with a recent trend of BYD’s all-electric cars outselling hybrid ones.

Passenger car sales in China likely fell 14.9% in June from a year ago, the China Association of Automobile Manufacturers said Monday. Vehicle sales overall likely fell to 1.93 million units in June, a decline of 16.3% year-on-year and down 9.5% from the prior month, the association said.

The figures indicate China’s vehicle sales still rose over the last two years.

Based on the association’s estimate, data from Wind shows China would have sold 12.8 million vehicles in the first half of 2021. That’s up 24.8% from a year ago and above the 12.3 million units sold in the same period in 2019.

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Chinese electric car start-ups Nio, Xpeng post strong March deliveries

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Xpeng CEO He Xiaopeng stands next to the company’s P7 electric sedan as he addresses media at the 2020 Beijing auto show.

Evelyn Cheng | CNBC

BEIJING — Two of China’s U.S.-listed electric car start-ups beat market expectations in their March deliveries, with both companies setting quarterly records.

Xpeng said Thursday it delivered 5,102 cars in March, beating implied deliveries of 4,262 cars for that month. The company delivered a total of 13,340 vehicles in the first quarter, topping its guidance of 12,500 for the period.

Nio announced deliveries of 7,257 vehicles in March, marking 20,060 cars for the first three months of the year — the most for any quarter, according to the company.

That falls within Nio’s original first quarter guidance of 20,000 to 20,500 vehicles. Nio had lowered the forecast last week to 19,500 cars after announcing a five-day factory closure due to a shortage in semiconductors.

Shares of both companies rose more than 1% during Thursday’s trading session in New York. The stocks remain in negative territory for the year so far, after surging in 2020.

Xpeng’s March deliveries were roughly split between the company’s P7 sedan and G3 SUV. Among Nio’s three models — all SUVs — the company said its five-seat ES6 saw the most demand with more than 3,000 deliveries last month.

The delivery beat is “a very positive indicator of the China EV market growth trajectory for the rest of the year,” Wedbush analysts Dan Ives and Strecker Backe wrote. They also predict March was a good month for Tesla in China, and expect electric vehicle stocks will climb 30% to 40% higher this year.

BYD’s stellar sales in March

However, the start-ups’ record quarterly deliveries still pale in comparison with Chinese electric vehicle and battery manufacturer BYD.

For the company’s Han model alone — which comes in both hybrid and pure-electric versions — sales topped 10,000 units in March, BYD management told Citi analysts in a call Tuesday. BYD’s total sales of new energy vehicles hit 23,000 units last month, according to Citi.

BYD expects that in December, it can reach sales of 30,000 cars in just the battery-powered category, Citi said.

Another U.S.-listed Chinese electric car start-up, Li Auto, had not released first quarter figures as of Friday morning Beijing time.

The company forecast in February it would deliver between 10,500 and 11,500 cars in the first quarter, or fewer than 4,000 vehicles a month. Li Auto’s only model on the market is an SUV that comes with a fuel tank for charging the battery.

Li Auto shares rose 1% Thursday and are down about 12% year-to-date.

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