Chinese EV makers Li Auto, Xpeng and Nio ride discounts to solid sales growth - South China Morning Post

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Shanghai-based Nio rewrote its record for the second straight month, with deliveries rising 3.2 per cent over May’s, hitting 21,209.

“The strong sales numbers add to evidence that the EV market in China is still growing despite worries about slowing momentum,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “However, leading players are now facing the hard task of improving profitability now that they have to offer discounts and other incentives to bolster sales.”

The industry is still mired in a discount war amid overcapacity worries.

The three top premium EV builders grappled with a drop in deliveries in early 2024 when new rivals such as smartphone vendor Xiaomi launched their new models to attract wealthy drivers.

They were forced to either slash prices or offer incentives, such as exempting users from paying battery rental fees, to maintain their market share.

The proprietary technology allows car owners to quickly exchange a spent battery pack for a fully charged one. Under the promotion, buyers of Nio vehicles that rent a swappable battery from the carmaker are exempt from paying 12 months of rental fees, which amounts to 8,736 yuan (US$1,202).

Xiaomi said monthly deliveries of its SU7 intelligent EV surpassed the 10,000 mark in June. The Beijing-based company began delivering the car, expected to take on Tesla’s Model 3, in late March.

The company said it targeted deliveries of at least 100,000 SU7s in 2024.

Zeekr, a premium EV unit of Geely, also reported record monthly sales in June after it shipped 20,106 units, up 8 per cent from May.

A photo taken on April 18, 2023, shows a Li Auto L7 on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai. Photo: Xinhua

BYD, which is the world’s largest EV maker and builds mainly budget models priced from 100,000 yuan to 200,000 yuan, said its deliveries in June grew 3 per cent from a month earlier to 341,658 units, barely beating the company’s previous record of 341,043 in December 2023.

Shenzhen-based BYD, backed by Warren Buffett’s Berkshire Hathaway, slashed the prices of nearly all of its cars by 5 to 20 per cent in mid-February. Since then, the prices of 50 models across a range of brands have dropped by 10 per cent on average, according to Goldman Sachs.

At present, only a few EV makers, like BYD and Li Auto, have turned profitable.

And with tariffs freezing them out of Europe and the United States, Chinese EV makers are poised to penetrate further into Southeast Asia, where the market value for cleaner cars is approaching US$100 billion. BYD, Xpeng and Geely are pumping billions of dollars into Indonesia, Thailand and Malaysia, aiming to seize a greater share of their fast-growing markets for sustainable vehicles.

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Major auto retailers make plans to offer EV tax credit at point of sale — here's how it could change car buying experience - The Cool Down

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Many of the biggest automobile sellers in the United States have announced plans to make federal tax credits for EVs visible at the point of sale.

At a meeting of White House officials, Treasury Department leaders, and auto industry insiders, numerous companies made commitments to strengthen their support of the 25E Clean Vehicle Tax Credit, the $4,000 credit that drivers who purchase used electric vehicles can claim through the Inflation Reduction Act, according to Environment+Energy Leader.

More than 13,000 auto dealerships registered to bring that $4,000 tax credit to customers upfront when they purchase used EVs, rather than making buyers wait until tax season to claim their rebates — a move that's already proved popular with drivers, as 90% of eligible purchasers indicated they'd rather take same-day cash savings than later tax credits.

Any EV purchaser who buys a used EV and makes less than $75,000 a year (or is part of a married couple that files jointly and makes less than $150,000 a year) can claim the $4,000 credit. EV buyers have already saved over $850 million from this initiative in 2024 alone, per Environment+Energy Leader.

Additionally, major companies agreed to introduce measures and features that make the tax credit more accessible and visible to customers. For example, CarMax plans to add a badge on its website that will clearly show which EVs qualify for the tax credit, and Carvana will let users see their potential savings before they finalize their purchases, according to Environment+Energy Leader. 

Numerous other companies will enact similar measures to make the tax credit more noticeable and approachable for drivers.

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Making the federal tax credit even easier to claim can only help the EV market — and, in turn, help the environment. EVs require substantially less maintenance, are far cheaper to refuel, and have a minuscule pollution footprint compared to their traditional gas-guzzling counterparts, which means the growing adoption of EVs is a win for both the planet and people who want to save money on transportation.

Other policies that help attract buyers to EVs are being promoted in Minnesota, Colorado, and California. For more information on how to approach an EV purchase, visit TCD's EV guide.

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