Barclays analyst Jiong Shao issued on Tuesday a new note on the Chinese electric vehicle manufacturers NIO, XPeng, and LI Auto enhancing the country’s reopening and the plans to increase car consumption. The analyst believes these companies are “well-positioned to benefit from the China reopening and economic stimulus trade,” as initially reported by Street Insider.
According to the report, Shao sees the EV sector as “a huge area for government consumption stimulus going forward” and the firm reminded investors that “the number of policy documents from both the local and central authorities on consumer subsidies for new energy vehicle purchases is increasing”.
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XPeng delivered a total of 34,422 units delivered in Q2 2022, a 98% increase from Q2 2021. As of June 30, 2022, year-to-date total deliveries reached 68,983 units, representing a 124% increase year-over-year, the highest among emerging automakers in China, the company noted.
For NIO, the delivery numbers represented an increase of 60.3% when compared to the same period in 2021 when delivered 8,083 vehicles. The EV maker delivered a total of 25,059 vehicles in the second quarter, up 14.4% year-over-year and its cumulative deliveries reached 217,897 as of June 30, 2022.
LI Auto saw its monthly delivery numbers rising 68.9% from 2021 bringing the quarterly result to 28,687 units, a 63.2% year-over-year increase. The cumulative deliveries of Li ONE have reached 184,491 since the vehicle’s market debut in 2019.
According to the data reported by the China Association of Automobile Manufacturers, automobile exports surged to 245,000 vehicles in May, up 73 percent month-over-month. The result represents a new record high for 2022 and 62.3 percent more when compared to May 2021.
Of the 245,000 vehicles exported in May, approximately 196,000 were passenger cars, up 69.7 percent from May 2021. In addition, the exports of commercial vehicles climbed 38.2 percent from 2021 to about 49,000 units.