Tesla (NASDAQ:TSLA) reclaimed its position as the best-selling EV maker in China with a 60% WoW increase in deliveries to 11.7k units, attributed to recent price cuts.
Li Auto (LI) followed with 7.7k units, showing a 13% YoY growth. AITO sales reached a record level of 7.3k units, marking a 7% WoW increase.
XPeng (XPEV) and Nio Inc. (NIO) experienced modest growth, with weekly sales recovering to 1.8-1.9k units. BYD, however, saw softer sales at a nine-month low of 40.2k units.
China's passenger vehicle (PV) sales increased by 6% WoW, reaching 464.9k units and regaining momentum following a sales push. NEV sales slightly outpaced PV sales with a 7% WoW growth, but NEV penetration remained at a six-month low of 31%.
Checks by Morgan Stanley indicate that some OEMs have exhausted orders and may resort to more aggressive promotions to boost car purchases as end demand could decline in the two to three weeks leading up to the Chinese New Year.
The China Passenger Vehicle Association (CPCA) anticipates a 7% MoM drop in overall China PV retail sales and a 15% decrease in NEV retail sales in January, with expected units at 2.2 million and 800k, respectively.
Shares of TSLA are up 1.43% in early trading Tuesday morning.