2024 EV Year Is Off To A Slow Start In China

January delivery figures are out and BYD Company Limited BYDDY is the star, although it also wasn’t immune to a MoM drop. January is always a weak month and considering that the Chinese Lunar Year is on February 10th, disrupting production and demand, February will follow suit. 

Nio Inc NIO reported a 18.2% YoY rise in deliveries as it delivered 10,055 EVs. However, the comparison doesn’t hold considering that last year, the Chinese New Year fell on January 22nd and therefore, it is more accurate to view the 44% MoM drop as Nio ended 2023 with a massive sales push in December. 

Li Auto Inc LI delivered 31,165 EVs in January, which is an impressive 105.83% YoY rise, but a 38.11% MoM drop. Li Auto is determined to become China’s best-selling premium EV brand as it aims for a new annual high of 800,000 deliveries a year. Li Auto will be opening more than 330 of its supercharging stations during the Chinese New Year as it continues to build its charging network. Unlike Tesla who sells only battery-powered EVs, Li Auto SUVs come with a fuel tank for charging the battery. 

XPeng Inc XPEV delivered 8,250 vehicles in January, which translates to 58.11 % YoY rise but MoM drop of 58.99%. Also, XPeng announced at the end of January that it will be upgrading its first plant for about 20 days. With this work, XPeng will boost the capacity of the Zhaoqing plant and ensure the necessary preparations for the new model that is expected to enter production later this year. 

According to date released from the China Passenger Association, Tesla Inc TSLA sold 71,447 made-in-China EVs. Tesla sales rose 8.17% YoY but also dropped 24.1% on a MoM basis. Tesla announced a new discounts in China on February 1st for its Model Y, after making price cuts on both the Model Y and Model 3 in January. 

After surpassing Tesla during the final three months of 2023, BYD also started 2024 strong with sales of battery-powered EVs growing almost 50% in January. BYD sold 105,304 fully electric vehicles during the first month of the year while also boosting production 64% YoY to 114,365 EVs. However, MoM, BYD also experienced a 40.92% drop. BYD revealed it delivered 205,114 vehicles in January which is a 33.4% MoM drop. However, BYD expects its annual earnings to have skyrocketed as much as 86.5% due to record deliveries and cost cutting measures but its profitability remains far behind Tesla that reported a 2023 net income of $15 billion last week, which marks a 19.4% YoY increase. But BYD also made a record with overseas sales rising 247.53% YoY.

EV Sales Might Be Slow This Year, But Innovations Will Keep On Coming

Even Tesla warned of notably slower growth in 2024. But EV evolution goes beyond vehicles. For example, a pickup accessories maker who promises to redefine standards in clean transportation especially with its solar-powered tonneau cover SOLIS and portable battery system COR, Worksport Ltd WKSP, started 2024 on a strong note. Worksport kicked off 2024 by making its durable, functional and stylish, ‘made-in-the- USA’ AL3 PRO hard-folding tonneau cover available on its e-commerce site, while announcing it is also on the way to Amazon, eBay, and Walmart. Worksport also revealed its tonneau covers will be compatible with a wide range of popular pickups. The list includes Ford Motor F F series, Stellantis STLA RAM and Jeep, General Motors (NYSE: GM) GMC and Chevrolet brands, Nissan Motor Co Ltd (OTC: NSANY) and Toyota Motor (NYSE: TM) light trucks, with plans to extend its compatibility to also include the Honda Motor Co Ltd HMC Ridgeline. 

As BYD’s general manager, Yunfei Li, put it, it’s not about who will sell the most EVs, but about everyone working together to increase the EV pie and all the above players are doing their share of the work in creating the EV future.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.