China Emerging EV Automakers (1): Expanding Production and Promoting Carbon Neutrality

Xpeng, NIO, and Li Auto annual sales approaching 100,000 units

2022/06/15

Summary

中国造车新势力2021年销量

 According to MarkLines data, sales of new energy passenger cars in 2021 in China increased by about 167% year-over-year (y/y) to about 3.33 million units. Of these OEMs, the 14 emerging Chinese EV automakers (established after 2010 and not affiliated with traditional automobile manufacturers) sold a combined total of approximately 490,000 vehicles, accounting for about 15% of the total. The top three automakers representative of the emerging OEM powerhouses, XPeng Inc. (Xpeng), NIO Inc. (NIO), and Li Auto Inc. (Li Auto), all have an annual sales volume exceeding 90,000 units. Leading the pack in 2021 was Xpeng with 98,000 units. Hozon New Energy Automobile Co., Ltd., (Hozon Auto) was in fourth place with sales of approximately 70,000 units, and is closing in on the top group. With 44,000 units sold, WM Motor Technology Group Co., Ltd. (WM Motor) fell from fourth place in 2020 to sixth place in 2021.

 Currently, the Chinese NEV (New Energy Vehicle) market is very competitive, continues to be crowded, and has yet to stabilize. Conventional automakers are accelerating model changes toward electrification and launching a series of NEV-only brands under their respective group umbrellas. Representative emerging EV automakers also continue to grow and demonstrate strengths in areas including intelligent-connected and user experience, and are in fierce competition with the NEV brands of traditional automakers.

 This report presents the main trends of the top three emerging EV automakers by sales volume over the past year: Xpeng, NIO, and Li Auto. Following their listing on the U.S. securities markets, these manufacturers have been successively listed on the Hong Kong exchange one after another, and are also focusing on building new factories and expanding production capacity. In response to China's "double carbon target" (carbon peak out and carbon neutral), leading emerging EV automakers have successively focused on the carbon neutral area, and Xpeng and Li Auto have released ESG (Environmental, Social, and Governance) reports to that effect. While increasing sales volume in China, at the same time, Xpeng and NIO Inc. have started to develop global markets, starting with the European market.

 

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