China’s Automakers Post Mixed July Sales Amid Muted EV Demand

(Bloomberg) -- Softening demand for electric vehicles weighed on China’s automakers in July, with several posting steep month-on-month declines.

Of the carmakers that have already reported monthly figures, Zeekr Intelligent Technology Holding Ltd., the EV brand of Geely Automobile Holdings Ltd., was hit hardest, announcing a 22% drop in sales from June to 15,655 units.

A Zeekr spokesperson said that equipment checks and repairs along production lines are usually timed for the summer. Zeekr’s production lines are also being adjusted to make several new models, the spokesperson said, adding that a monthly run rate of 30,000 units for one of the months in the fourth quarter is still the goal.

Parent Geely reported a 9.2% slump in July sales while Great Wall Motor Co.’s decreased 6.9%.

China’s Passenger Car Association said last week that July sales of new-energy vehicles would likely be flat month-on-month at 860,000 units. Broader retail vehicle sales are likely to fall 2.2% year-on-year to 1.73 million units, the industry body said, amid slower economic growth and muted consumer spending.

Beijing has been trying to prop up EV sales, last month saying it will double the cash handout to trade in older cars as part of a wider 300 billion yuan ($41.4 billion) package to drive consumption.

BYD Co. continued its run as China’s best-selling car brand in July, although its passenger vehicle sales only inched 0.2% higher to 340,799 units. While plug-in hybrid sales jumped to 210,799 units, thanks to discounting, pure battery EV sales fell to their lowest in five months.

Among China’s other three US-listed EV makers, Nio Inc., Xpeng Inc. and Li Auto Inc., the latter stood out, posting a 6.8% increase in sales to 51,000 units, largely due to the popularity of its extended-range EVs.

©2024 Bloomberg L.P.