EV Slowdown Concerns Eased As China's NEVs Show Strong Q3 Rebound: Analyst

RBC Capital Markets analyst Tom Narayan sees a rebound for China’s NEVs in the third quarter, following a weak first quarter, providing reassurance to investors concerned about a potential EV slowdown.

In September, China’s NEVs demonstrated growth both year-over-year and quarter-over-quarter, the analyst writes.

PHEVs drove the year-over-year increase with an additional 232,000 sales, while BEVs rose by 144,000. PHEVs seem to be capturing market share from BEVs, adding further competition for foreign brands like Volkswagen AG VWAGY and Tesla, Inc. TSLA.

The Chinese Passenger Car Association (CPCA) reported that September NEV sales reached 1.123 million, marking a 50.5% increase year-over-year, up from August’s 1.025 million and July’s 878,000.

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For the third quarter, NEV sales rose 44% year-over-year, following increases of 32% and 34% in the second quarter and first quarter, respectively.

In September, PHEVs saw a 94.7% year-over-year growth, while BEVs increased by 28.8%.

The month concluded with a split of 57% BEVs and 43% PHEVs, the analyst adds.

Tesla reported 72,200 domestic retail sales in China (excluding exports) for September, reflecting a 66% year-over-year increase.

This figure is up from August’s 63,456 and July’s 46,227, aligning with the overall growth trend in the BEV market, Narayan adds.

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