Key Takeaways from Chinese EV Companies’ November Deliveries

Chinese EV companies including NIO, Li Auto, Xpeng Motors, and BYD have released their November delivery reports. Here are the key takeaways from the report.

NIO delivered 15,959 cars in November which was 59.8% higher YoY but lower than the 16,074 cars that it delivered in October. In the first 11 months of the year, it delivered 142,026 cars – 33.1% higher than the corresponding period in 2022. The company’s cumulative deliveries stand at 431,582.

NIO is underperforming Chinese EV stocks in 2023

NIO stock fell 1.65% yesterday and is down almost 31% for the year and is not only underperforming the markets but also Chinese EV peers. The stock closed with losses in 2021 and 2022 as well, after rising over 1,100% in 2020. In early 2021, NIO’s market cap hit almost $100 billion amid the euphoria towards EV stocks.

However, the stock has since looked weak among others because of the tepid delivery reports. The company would release its Q3 earnings next week where it would also provide more color on the EV demand environment in China.

Xpeng Motors’ EV deliveries hit record high

Xpeng Motors delivered 20,041 vehicles in November which was 245% higher YoY and a new monthly record for the company. It was the second consecutive month where Xpeng Motors’ EV deliveries were more than 20,000. Also, its deliveries have risen every month for 10 consecutive months.

Xpeng Motors’ deliveries sagged in the first half of 2023 and were below 10,000 in all the months. However, its deliveries have gained traction after the launch of the G6 SUV. It delivered 8,750 G6s in November and said that it was the best-selling model in the RMB200,000-250,000 price range during the month in China.

In the first 11 months of 2023, Xpeng Motors has delivered 121,486 vehicles which is higher than what it delivered in all of 2022. The company’s cumulative deliveries reached 3,72,564 at the end of November.

Last month, Xpeng Motors showcased its X9 model at the Guangzhou Auto Show. The model is built on its SEPA 2.0 with presale pricing starting from RMB388,000.

In its release, Xpeng said, “As another strategic product based on SEPA2.0, the X9 boasts XPENG’s full stack of cutting-edge smart EV technologies developed in-house. It comes with active rear-wheel steering as standard, along with a spacious, unparalleled third-row seating experience, ushering in the next generation of ultra-smart large electric 7-seater models.”

It added, “The addition of the X9 strengthens XPENG’s growing lineup of Smart EVs across multiple vehicle segments.”

Xpeng Motors’ autonomous driving software

Xpeng Motors said that it provided an over-the-air update for the G9, G6, and P7i models through its smart cockpit operating system, Xmart OS 4.4.0.

Notably, Xpeng Motors has been advancing its autonomous driving capabilities and in August it also acquired the self-driving assets of Chinese ride-hailing app Didi. As part of the $744 million deal, Didi took a 3.25% stake in Xpeng in exchange for its EV and autonomous driving assets.

Xpeng Motors to launch a new EV brand in China

Also, Xpeng would launch a new EV brand developed under the project name “MONA” and would produce vehicles in the mass market RMB150,000 price range.

In July, Volkswagen partnered with Xpeng Motors to build two EVs on its platform and also buy a stake in the company for a total consideration of $700 million. The deal was a pathbreaker for not only XPEV but also the Chinese EV ecosystem as it reflected the confidence of the German auto giant in a startup EV company. It was also a testimony to Xpeng Motor’s self-driving capabilities.

Xpeng Motors expects the deal with Volkswagen to also help improve its margins. It reported a gross margin of -3.9% in the second quarter as compared to 1.7% in Q1 2023 and 10.9% in Q2 2022. The company’s vehicle margin was -8.6% in Q2 2023 as compared to -2.5% in Q1 2023 and 9.1% in Q2 2022.

The company expects its gross margins to improve over time and said that increasing volumes would help its margins to improve in Q4.

Li Auto deliveries

Li Auto delivered 41,030 cars in November – a YoY rise of 172.9% and a new monthly record for the Chinese EV company. It has impressed markets with its deliveries and its monthly sales have hit record highs for eight consecutive months, and November is the second month when its deliveries were more than 40,000. It has delivered 325,677 vehicles in the first 11 months of 2023 while the cumulative deliveries stand at 583,011. Li Auto had set a target of 300,000 deliveries for 2023 and hit that goal with one month to spare.

In his prepared remarks, Li Auto’s CEO Xiang Li said, “Propelled by the growing market demand, we will continue to strive for a 50,000 monthly delivery target in December with ample preparations in sales, supply, production, and delivery capabilities.”

He added, “Li Auto has made significant progress in the research and development of autonomous driving, and plans to accelerate the rollout of AD Max 3.0 through the upgrade of OTA version 5.0 in December. With this upgrade, our AD Max 3.0 will provide full scenario autonomous driving (Navigation on ADAS) and assisted driving (lane change control) functions, as well as the industry’s leading AEB active safety system and automated parking system.”

Li Auto also closed 1.76% lower on Friday despite another month of impressive deliveries. The stock is however up 74% this year.

BYD’s EV sales hit new record

BYD delivered 301,903 new energy vehicles in November which was up 31% YoY but similar to October. It was nonetheless the second consecutive month where its monthly deliveries were more than 300,000 units.

BYD sells both battery electric and plug-in hybrid vehicles (PHEVs). In November, the company’s BEV deliveries rose 3% YoY to a new record high of 170,150 while PHEV deliveries fell 3%.

BYD surpassed Tesla in terms of total deliveries last year and looking at the rising BEV sales, it looks on track to dislodge Tesla from the top spot in terms of pure electric cars also.

The share of BEVs in BYD’s sales mix has been rising steadily and reached 56.4% in November as compared to 54.9% in October and 52.5% in September.