China's new energy vehicle sales were 109,000 units in August, up 11.7% QoQ and up 25.8% YoY, according to data released by the China Association of Automobile Manufacturers on September 10.
New energy passenger vehicle sales in August were 10.0 million units, +23.1% year-on-year. EV sales were 80,000 units, up 22.7% year-on-year; PHEV sales were 20,000 units, up 24.5% year-on-year.
CITIC Securities analysts Song Shaoling and Chen Junbin believe that China's Covide-19 prevention and control has been effective and the overall market situation is improving. Driven by local policies to promote auto consumption, the market has generally performed better than expected.
CITIC Securities said Tesla sales reached 12,000 units in August, continuing to lead the high-end trend of electric vehicle consumption. BYD's new model, the Han EV, sold 2,400 units in a single month, and sales are expected to rise steadily as production capacity climbs further.
Analysts believe that the Beijing International Auto Show in September will further stimulate the launch of new models, which, together with the consumption season brought about by the Mid-Autumn and National Day holidays, is expected to steadily boost demand for new energy vehicles in China.
CITIC Securities noted that on August 27, Xpeng Motors landed on the New York Stock Exchange, becoming the third Chinese new energy vehicle company to list in the U.S. after Nio and Li Auto, allowing them to further open financing channels.
Analysts believe that China's auto industry is steadily recovering, new energy vehicle production and demand side of the continued recovery, demand will be gradually released.
According to them, the impact of Covid-19 on China is almost eliminated, new models are gradually launched to stimulate market demand, and the policy environment is also warming up, which are all favorable to the new energy vehicle industry.
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