China EV sales will continue to recover; BYD Q1 sales up 80%

Sales of electric vehicles in China should continue to improve with commissioning No (NEVER), XPeng (XPEV) And Li car (LI) are expected to report March and first quarter sales of electric vehicles in China on Saturday.

Also EV and battery giant BYD (BYDDF) also plans to report sales in March and the first quarter.

BYD, a big rival of Tesla (TSLA) in China said on Wednesday that sales would continue to grow more than 80% in the first quarter. This comes despite an escalating electric vehicle price war since January.

BYD outperforms Tesla in China and expands into several overseas markets. Tesla is also expected to report global sales for the first quarter this weekend.

BYD EV sales

BYD sold 151,341 electric vehicles, including hybrids, in January and 193,655 electric vehicles in February. The combined two-month total of 344,996 vehicles was also up 90% year over year, according to data tracked by CnEVPost.

An 80% increase in the first quarter suggests BYD sold about 515,400 vehicles during that period, or about 170,000 vehicles in March. The automaker sold 286,329 vehicles in the prior-year quarter.

On Tuesday, BYD reported skyrocketing profits for the fourth quarter and full year of 2022. But amid a fierce electric vehicle price war sparked by Tesla, BYD has reportedly cut both production and prices.

On Wednesday, BYD management reportedly linked the electric vehicle price war to supply outpacing demand.

BYDDF stock, which trades over-the-counter, was quiet in stock markets early Wednesday.


Nio sold 8,506 EVs in January and 12,157 EVs in February.

On March 1, the EV startup forecast 31,000 to 33,000 deliveries in the first quarter during a seasonally weak period that includes the Chinese New Year holiday.

The outlook implies China EV sales of 10,337 to 12,337 in March.

Analysts expect Nio EV sales to improve significantly in the second quarter as new models launch and production ramps up.

Nio shares rose 1.3% to 9.31 in premarket trading on Wednesday. Nio shares were up 3% on Tuesday, still below the 50-day moving average.

Li car

Li sold 15,141 vehicles in January and 16,620 electric vehicles in February.

On Feb. 27, Li forecast 52,000-55,000 deliveries in the first quarter. That suggests EV sales in China of 20,239 to 23,239 in March.

March sales should include the new L7, a five-seat electric SUV. Li Auto launched the L7 on February 8th.

LI shares are up 1.4% early Wednesday to 25.09. Shares of Li Auto rose 6.6% on Tuesday, trading above the 50-day moving average and nearing the 200-day moving average within a bottoming base.


XPeng sold 5,218 EVs in January and 6,010 EVs in February.

As of March 17, the embattled EV startup completed 18,000 to 19,000 deliveries in the first quarter. This means that 6,772 to 7,772 electric vehicles were sold in China in March.

Recent comments from XPeng management point to a strong sales recovery in the second half of 2023. Meanwhile, the company has released new and improved models such as the G9 SUV and the P7i sedan.

XPEV shares rose 3% to 10.56 early Wednesday. Xpeng shares rose 5.6% on Tuesday, recovering from near the 50-day price.

BYD stock is trading above the 21-day moving average but below the 50-day and 200-day moving averages after a rally early in 2023 stalled.

As of Tuesday, BYD stock is up almost 11% in 2023. In 2022, it collapsed by 27.7%.

Sale of electric vehicles in China

The China Passenger Car Association (CPCA) expects China’s New Energy Vehicle (NEV) sales to continue to recover in March versus February.

Retail sales of NEVs, which include hybrid electric vehicles, are expected to reach 560,000 units, up 25.8% year-on-year and up 27.5% from February, with EV penetration at 35.2 % reached.

The Chinese auto market performed poorly in January and February, but February showed an improvement over January. Additionally, demand began to recover in March, the CPCA said.

Electric vehicle sales in China more than doubled in 2021 and 2022. However, they are expected to slow to around 31% growth this year.

The slowdown comes amid macro headwinds and the end of EV subsidies.


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