One of the hottest markets in China right now is electric vehicles or EVs. As of July, deliveries of EVs in China increased by 112% year-over-year to 313,240 vehicles, and the country’s EV market could be valued at $23 billion by 2022, according to Bloomberg New Energy Finance. One company that could benefit from this trend is Chinese EV maker Nio Inc (NYSE: NIO), which recently signed up Leonardo DiCaprio as its brand ambassador.
As Nio And Li Auto Reported Increases in July Deliveries
After Nio and Li Auto reported an increase in July car deliveries, their shares surged in the U.S. Nio delivered 10,052 vehicles in July, an increase of 26.7% compared to June, but a decrease from almost 13,000 in June.
Therefore, Li Auto has said that it delivered 10,422 Li ONE sports utility vehicles in July, up 21.3% year-over-year, but also lower than June’s figure. Despite the differences in driving models, Xpeng delivered the most. The Guangzhou, China-based company announced last month that they delivered 11,524 orders in July, up 40% from the same time last year, but also not as much as they did in June.
Nio shares rose 2.3%, and Li Auto gained 3.8%. Xpeng inched up 0.2%. Three carmakers were affected by the resurgence of Covid-19 in China earlier this year, which led to lockdowns in major cities and manufacturing hubs throughout the world’s second-largest economy. Car companies are dealing with component shortages, component surpluses, and rising prices for materials.
Xpeng Has Announced The G9 SUV, With a September Official Launch Planned
The July production of Nio’s ET7 and EC6 vehicles was hampered by the limited availability of casting parts. The company stated that it has been working closely with supply chain partners and that it anticipates increased production of vehicles in the upcoming months of the third quarter of 2022. As reported by Xpeng and Li Auto, supply chain disruptions were not discussed and it was reported that Xpeng has announced the G9 SUV, with an official launch planned for September.
The 200,000th Li ONE rolled off the production line at Li Auto’s Changzhou factory on Monday, representing a big achievement for the company.