Deliveries of electric vehicles to China are underway, with Li-Auto (LI), nio (nio) and the auto giant backed by Warren Buffett BYD (BYDDF) reporting record sales in December as XPeng (XPEVdeliveries rebounded.
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China eased Covid restrictions, which had strangled the economy. But now there are widespread coronavirus outbreaks across the country. Tesla China and other China-based automakers have now warned that deliveries and production could eventually plummet due to Covid disruptions.
Analysts are also sounding alarm bells on the broader automotive industry, and in particular the EV segment in 2023. China’s EV subsidiaries ended on Dec. 21. 31.
With this backdrop, You’re here (TSLA) rivals in China are expected to close the book in 2022.
EV deliveries in China: BYD
BYD’s sales hit a new record high in December for the fourth month in a row, but fell short of recently lowered expectations amid Covid-related issues.
BYD sold 235,197 all-battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) in December, up 150% from a year earlier but only 2% vs. November.
Among its 234,598 passenger vehicles, BEV sales in December were 111,939, up 132% from December 2021, but down from 113,915 in November. PHEV sales soared 176% to 122,659 vs. a year earlier, surpassing November’s 116,027.
BYD sold 683,440 vehicles in Q4, up 157% vs. a year earlier and 27% from Q3. For 2022, sales jumped 209% to 1,863,494 BEV and PHEV.
The electric vehicle and battery giant on December 11. 22 said Covid infections among workers reduced production by 2,000 to 3,000 vehicles a day. One executive said full-year BEV and PHEVS deliveries would be around 1.88 million, implying December deliveries of around 247.00.
The actual results suggest that Covid had an even greater impact on production than BYD had anticipated.
BYD sales have exploded and, including plug-in hybrids, the company overtook Tesla’s sales in China. It closed the gap to Tesla among BEVs.
Exports remain a small part of BYD’s total sales, but tend to increase rapidly, reaching 11,320 in December. However, the company has a big international expansion underway.
There are fears that the waves of Covid, which will likely continue beyond the Lunar New Year in late January, will hamper production, supply chains and demand in wider China. BYD Chairman Wang Chuanfu has set a delivery target of 4 million for 2023.
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Electric vehicle deliveries in China: Li Auto
Li Auto (LI) reported on Jan. 1 that December deliveries jumped to 21,233 vehicles, with its L8 and L9 hybrid SUVs all topping 10,000. That was up 50% from a year earlier and soaring from 41% vs. the previous high of 15,034 in November.
Li Auto said Friday that December deliveries of its hybrid SUVs will top 20,000.
In the fourth quarter, Li delivered 46,319 vehicles, up 31.5% from a year earlier and nearly 75% vs. Q3, while a model change was in progress. My Auto deliveries reached 133,246 vehicles over the full year, up 47% compared to 2021.
New deliveries
Nio delivered 15,815 vehicles in December, up 51% vs. a year earlier and nearly 12% vs. The previous record of 14,178 set in November. Fourth-quarter sales jumped 60% from a year earlier to 40,052, topping the third-quarter record of 31,607. For 2022, shipments soared 34% to 122,486.
Nio recently cut its fourth-quarter delivery from 38,500 to 39,500 vehicles in the fourth quarter, well above previous targets of 43,000 to 48,000, citing Covid-related issues. The revised target implied deliveries in December of 14,263 to 15,263 electric vehicles.
December sales included 7,594 ET5 sedans and 4,154 ES7 SUVs, as Nio’s two new models ramped up. The ET5 is a competitor to the Tesla Model 3.
Dec. On February 24, Nio unveiled its EC7 coupe SUV, which will likely compete with the Tesla Model Y in the high-end market. EC7 deliveries will begin in May 2023. Nio also unveiled a revamped ES8 SUV, now on the NT 2.0 platform like its all-new models. Deliveries begin in June.
These are two of five new or revamped electric vehicle models that Nio says will launch in the first half of 2023.
In November, Nio posted a much worse-than-expected third-quarter loss. But the Chinese luxury electric vehicle startup had predicted record deliveries and accelerating revenue in the fourth quarter despite Covid-related disruptions.
In the third quarter, Nio sold a record 31,607 vehicles, up 29.3% from a year earlier and up 26.1% vs. Q2. The third-quarter result was near the lower end of its forecast for quarterly electric vehicle sales. Nio sold 10,052 electric vehicles in July, 10,677 in August and 10,878 in September.
Electric vehicle deliveries in China: XPeng
XPeng (XPEV) shipments jumped to 11,292 in December, up 94% from November, back above 10,000 for the first time since July. That included 4,020 G9 SUVs, up 160% from November for the relatively new crossover model.
Fourth-quarter shipments were 22,204, down from 29,570 in the third quarter, but beating XPeng’s forecast of 20,000 to 21,000.
Some analysts thought that December and the fourth quarter could come below this prediction.
Full-year sales climbed 23% to 120,757.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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