Electric vehicle makers in mainland China sold 1.26 million units in July, including passenger cars and commercial vehicles. This marked a 5% drop from June and the first month-on-month decline since May, according to the China Association of Automobile Manufacturers (CAAM). Despite the slowdown, sales still rose 27.4% year over year.
NIO is feeling the pressure from bearish momentum. Follow the news here.
The drop followed Beijing’s push for automakers to scale back discounts and focus on profitability, SCMP reported on Monday.
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Chinese electric vehicle company Nio Inc.- ADR NIO stock is trading lower on Tuesday. Nio rivals Li Auto Inc LI and Xpeng Inc.- ADR XPEV stocks are also down.
On a positive note, JPMorgan data showed that the average price cuts on electric and petrol cars fell to 16.7% in July from a record 17.4% in June. In late May, the Ministry of Industry and Information Technology warned that carmakers initiating price wars would face penalties.
Between January and July 2025, EV sales climbed 38.5% year-over-year to 8.22 million units, with EV adoption rising to 48.7% from 43.8% in 2024. Lower-priced electric cars under 100,000 yuan ($13,925) with basic self-driving features sold strongly in July, as value-for-money models attracted price-sensitive buyers.
Among roughly 50 EV manufacturers in China, only BYD, Li Auto, and Huawei-backed Aito are profitable.
Fitch Ratings expects demand to soften from July to September as discounts ease but rebound in the fourth quarter as buyers rush to secure tax breaks before they begin phasing out — EVs will face a 5% sales tax starting January 2026 and 10% in 2028.
Meanwhile, Chinese EV makers posted mixed registration results from Aug. 4 to 10, reflecting a generally weaker market following end-of-month sales pushes. BYD Company ADR BYDDY led with 54,800 registrations, down 10.1% from 60,930 a week earlier and 22.4% lower than the 70,600 units recorded a year ago. Tesla Inc TSLA registered 13,400 vehicles, up 21.6% from 11,020 the previous week, though slightly below the 13,500 units from last year, CarNews China.com reported on Tuesday.
Leapmotor logged 9,300 registrations, 8.7% lower week-over-week but up 97.9% year-over-year, while Xpeng recorded 7,900, down 12.9% from the prior week yet surging 229.2% year-over-year. Xiaomi XIACY saw 6,800 registrations, down 10.3% week-over-week but up 74.4% year-over-year. Nio registered 6,100 units, down 23.1% from 7,930 the week before; this included 2,100 Nio-branded vehicles and 700 Firefly units.
Other notable figures included Li Auto at 5,300 (down 58.6% year-over-year), Zeekr ZK at 3,300 (unchanged year-over-year), and Nio’s Onvo at 3,200 (down 13.5%).
Price Actions: Nio stock is down 8.25% at $4.51, Xpeng is down 6.58% at $20 and Li Auto is down 0.23% at $24.02.
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Photo: Onvo L90, Courtesy Nio
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