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Aug. 12, 2021, 9:15 a.m. EDT

EV Makers Are Determined to Dethrone Tesla in China

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Aug 12, 2021 (IAM Newswire via COMTEX) -- EV sales in China surged in July. On Wednesday, the China Association of Automobile Manufacturers (CAAM) revealed that wholesale deliveries of new EVs that include battery-powered, plug-in hybrid and hydrogen fuel-cell cars rose 164% YoY last month. These 271,000 units imply that EVs made 10 percent of total auto sales in China from January to July. CAAM also reported that wholesale auto deliveries fell 12% YoY to 1.9 million units also during July.

An anemic demand for Tesla

Tesla Inc /zigman2/quotes/203558040/composite TSLA +3.21% has been hit by scandals and negative press in China due to customer accusations of quality problems and government concerns that the vehicles' on-board cameras could threaten data privacy and even national security. As a result, Tesla sold only 8,621 cars the country last month, which is a 69% drop month on month and a 26% fall YoY, according to China Passenger Car Association data that was released on Tuesday. This is the first annual decline since the opening of Gigafactory in Shanghai in January last year. What a difference compared to last year when Model 3 sedan was China's best-selling EV. Also in July, 24,347 made-in-China Tesla cars were exported to the European market.

Dethroning Tesla

Chinese EV players and legendary global carmakers have intensified their efforts to dethrone Tesla in the world's biggest EV market by launching new models in the country.

Warren Buffett-backed automaker BYD /zigman2/quotes/200126312/delayed BYDDF +1.77% , an early mover in China's electric car market, saw its sales more than triple YoY in July to 50,492 units. During the same month, its Chinese EV rivals XPeng Inc /zigman2/quotes/219982686/composite XPEV +0.98% and Li Auto /zigman2/quotes/219811686/composite LI -0.69% reported record sales figures of 8,040 and 8,589 units, respectively. Although it delivered 7,931 vehicles in July, less than both of its peers, Nio Inc /zigman2/quotes/204905836/composite NIO +5.04% that focuses on the premium smart EV market in China just reported it narrowed its losses as it delivered 21,896 vehicles in the second quarter. Despite supply chain uncertainties, Nio forecasts that it will deliver between 23,000 and 25,000 vehicles in the undergoing third quarter.

Volkswagen’s /zigman2/quotes/204431732/delayed VWAGY -1.94% MEB-based EVs that come under the ID. subbrand, finally gained some traction after a slow start. According to Reuters, in July the two joint ventures with FAW and SAIC Motor Corporation on Limited, it delivered 5,800 ID models, more precisely ID.4 CROZZ, ID.4 X, ID.6 CROZZ and ID.6 X. This is a significant improvement from June's figure that was lower than 3,000. Volkswagen needs to increase the volume as soon as possible as the current rate is not sufficient to reach the 2021 target of 80,000 to 100,000 IDs. ID.3 is scheduled to debut in China by the end of the year but marketing adjustments are likely in the cards.

By the looks of it, the EV pioneer will need to fight for its place under the sun, in China.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact:

The post EV Makers Are Determined to Dethrone Tesla in China appeared first on IAM Newswire .

COMTEX_391449307/2618/2021-08-12T09:14:43

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