[News] Impressive Rise in China’s September EV Sales; NETA Auto Eyes 2023 Recovery

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Several Chinese new energy vehicle manufacturers disclosed their delivery and sales data for September on Sunday, October 1. GAC Aion, in particular, reached a significant milestone by surpassing 50,000 in sales, while Li Auto Inc. experienced a remarkable 200% surge in deliveries.

As reported by the Securities Times, Changan Automobile recorded sales of 50,990 new energy vehicles in September, representing a substantial 27.09% month-on-month increase. NETA Auto delivered a total of 36,060 new vehicles in September, marking an outstanding surge of 212.7% compared to the same month a year ago, and setting a new record for monthly deliveries.

Geely Auto made history in September with total sales of 170,500 vehicles. Notably, Geely’s new energy vehicle sales reached 53,690 units in September, constituting more than 31% of its overall sales.

It is crucial to emphasize that, beyond established players like BYD, GAC Aion, Changan Automobile, and NETA Auto, emerging contenders in the automotive industry, including XPeng and NETA, achieved impressive sales figures ranging from 12,000 to 15,000 vehicles in September.

China Dongguan Securities pointed out that both central and local governments in China have introduced policies to support the expansion of new energy vehicle consumption. Coupled with the automotive market entering its peak season and major automakers continually launching new products, latent demand is being unleashed, and future new energy vehicle sales are poised for sustained growth.

According to TrendForce 2Q23 BEV & PHEV Sales Rankings and Market Share, Chinese manufactures are impressive as well, with BYD trails closely behind with a boosted share of 16.2%. Moreover, GAC Aion, a brand that has been making waves primarily in the Chinese market with its high value-for-money proposition, clinched the third spot with a 6% market share. In PHEV segment, BYD continued its lead with a whopping 36.5% market share. Its high-end subsidiary Denza, recorded increasing sales, escalating its market share to 3.4% and climbing to seventh place. Another brand to watch, Li Auto, set a new Q2 record with 87,000 units sold, keeping its second-place position firm with 10% market share.

Recently, on October 5th, Radio Television Hong Kong (RTHK) interviewed William Li, the founder and chairman of NETA Auto, stated that the post-pandemic economic recovery did not meet expectations, and fluctuations in automobile sales are considered normal. Currently, automobile consumption has rebounded to approximately 70% of pre-pandemic levels, with consumers displaying some hesitation towards car purchases. Recovery will take time, but it will not hinder the industry’s long-term prospects.

William Li believes that government policies indeed encourage new Electric Vehicles consumption. Despite intense market competition and the company’s operational performance falling short of expectations, he observes a stronger desire among young consumers for purchases that emphasize smart features, as they no longer prioritize high-end or well-established brands as they did before. He holds an optimistic view that young consumers will constitute the primary customer base for new energy vehicles.

As an illustrative example, he mentioned NETA Auto’s sports cars, NETA GT. Formerly priced at over one million RMB, they have now been reduced to approximately RMB$200,000. With the aid of loans and policy incentives, sports car sales, which previously numbered only a few hundred vehicles per month, can be elevated to 2,000 per month, and possibly even reach tens of thousands in the future. He envisions leveraging the advantages of new energy vehicles to explore new markets in the years ahead.

(Image Source: NETA)