What: China’s Passenger Car Association recently increased its forecast for “new electric vehicles” that will be sold in the country during 2022, from 5 million units to 6 million. NEVs include battery-powered vehicles (BEVs) and also plug-in hybrid vehicles (PHEVs). There were 571,000 NEVs sold in June and then 564,000 sold in July, increasing at 144% and 129% (respectively) in year-over-year comparisons.
Here’s how the market share looked for those numbers in July. Keep in mind that some of these vendors — like Tesla and NIO — are only selling BEVs and don’t offer PHEVs:
- 29% – BYD
- 7% – SAIC Wuling
- 5% – Tesla
- 2% – Xpeng
- 2% – Volkswagen
- 2% – Chery
- 2% – NIO
- 52% – Everyone else.
Impact: I’m really intrigued by this as an investor. China’s EV market is not only growing rapidly, but it’s extremely fragmented and doesn’t have a clear-cut winner yet. It opens the door for companies we’re familiar with like Tesla, but also less-familiar companies like BYD, Xpeng and NIO. I’ll continue monitoring the sales reports, to see who’s winning share in this intriguing industry.
