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Government subsidies and competitive pricing helped major Chinese electric vehicle (EV) manufacturersBYD (BYDDF), Li Auto (NASDAQ:LI), XPeng (NYSE:XPEV), and NIOreport record December delivery figures. Though on a relatively lower level, Leapmotor, ZEEKR Intelligent (NYSE:ZK), and Xiaomi (XIACF) also reached monthly highs. Some firms fell short of their annual delivery targets despite the year-end rise.
A government subsidy scheme of 20,000 yuan ($2,740) for substituting electric vehicles (EVs) for gas-powered cars concluded in December helped to sustain the late-year demand bump. Manufacturing-related pricing wars also drove sales and are predicted to last until 2025.
While Li Auto instituted a 15,000 yuan ($2,55) cash subsidy per purchase and zero-interest financing for three years, Tesla (NASDAQ:TSLA) extended its 10,000 yuan ($1,370) discount for Model Y loans in China through January. Moreover, in maintaining demand in 2025, analysts predict ongoing pricing competitiveness.
This article first appeared on GuruFocus.