09/06 2024 409
Today, I finally have time to talk about the sales performance of the top five new-energy vehicle (NEV) makers in August.
In the past, we often mentioned NIO, Xpeng, and Li Auto together, as if they were conjoined twins dominating the top three spots on the sales chart. However, starting from 2023, there has been a noticeable gap in sales between these three companies. Li Auto has consistently dominated the SUV market within the 300,000 yuan price range due to its comprehensive product advantages. It has also pioneered the concept of a “TV, sofa, fridge” interior, which was initially thought to be a unique selling point for a single product line. Surprisingly, this concept has resonated with consumers for over a year, helping Li Auto maintain its top position on the sales chart. Among the new forces, Li Auto is clearly ahead of the pack.
In August, Li Auto delivered a total of 48,122 vehicles, bringing its cumulative deliveries to 288,103.
As we all know, surpassing 10,000 monthly sales is considered a benchmark for automakers to achieve market recognition. In the automotive industry, achieving over 10,000 monthly sales is like a reassurance that the brand has gained market acceptance, as well as consumer trust. Conversely, products like Geely's Geotrek 01, despite their advanced technology and promotional efforts, have struggled to sell more than a few hundred units per month. It's no wonder that Xia Yiping tearfully lamented during the Geotrek 07 launch event that selling only a few hundred cars per month could threaten the survival of a new brand.
Both as new forces in the industry and with innovative technologies and financial backing, why has Geotrek struggled while Li Auto has thrived? There are many factors that cannot be easily replicated.
Li Auto's current sales success is not a fluke. Throughout 2024, it has consistently delivered impressive results each month. This indicates that Li Auto's product advantages are not just a result of market or consumer impulsiveness but rather reflect the brand's comprehensive strength. While some may criticize Li Auto for lacking technological sophistication or focusing too much on marketing, we can see that the company has been actively deploying its intelligent driving technologies this year.
Since the third quarter, Li Auto's entire product line has undergone comprehensive upgrades through continuous OTA updates, enhancing their product capabilities. Li Auto's in-house developed end-to-end autonomous driving technology and VLM system have demonstrated high performance limits and strong evolutionary capabilities in user tests. Currently, over 50% of test users have driven more than 50% of their miles using the city NOA feature. While enhancing intelligent driving capabilities, Li Auto has also prioritized safety, introducing the industry's first fully automated emergency steering (AES) system, providing dual protection through AEB and AES in extreme scenarios. These are some of Li Auto's key achievements in intelligent driving this year.
Let's move on to the second-place finisher, Leapmotor. This year has truly been a harvest year for Leapmotor, as it has surpassed its own expectations and gained significant market attention, particularly after the launch of its C11 model. The positive feedback has been overwhelming. In August, Leapmotor delivered 30,305 vehicles, once again breaking its own record and becoming the third NEV maker to surpass 10,000 monthly sales. This achievement deserves applause.
Those who follow Leapmotor know that the company has faced numerous challenges along the way. For a long time, Leapmotor was met with skepticism about its technology, full-stack capabilities, and brand value. In an era where automakers poured money into marketing, Leapmotor remained relatively low-key, avoiding excessive marketing tactics. As a result, media outlets often struggled to cover the company effectively.
Gradually, Leapmotor found its niche by focusing on offering high-value vehicles at affordable prices. With its "full-stack in-house development" and "technology democratization" strategies, Leapmotor has established itself in the mass market. Its C-series models have achieved remarkable success, with the C11 being particularly popular among consumers. While Leapmotor remains committed to the mass market, it also plans to upgrade its brand in the near future. CEO Zhu Jiangming remains focused on popular models to ensure that customers can afford high-quality vehicles.
Last year, Leapmotor also formed a strategic partnership with Stellantis. Currently, its C10 and T03 models are entering overseas markets, particularly in Europe. As Leapmotor continues to expand its international presence, it serves as a valuable reference for other latecomers in the industry.
Coming in third is NIO. Despite recent rumors of bankruptcy, NIO has maintained a positive trajectory this year. In August, NIO delivered 20,176 new vehicles, marking the fourth consecutive month of over 20,000 deliveries. The company's ES6 and EC6 models have collectively delivered over 300,000 units. From January to August 2024, NIO delivered a total of 128,100 new vehicles, representing a year-on-year growth of 35.77%. To date, NIO has delivered a cumulative total of 577,694 vehicles.
Recently, NIO held its AI Technology Day and Charging Day, showcasing its in-house developed chips, intelligent driving capabilities, and battery swapping stations. Moreover, NIO's second brand, JOYWAY, has been actively expanding its presence with new store openings and vehicle arrivals. In September, JOYWAY's L60 model is set to launch, marking a potential turning point for NIO's brand development.
So far, the feedback on JOYWAY has been overwhelmingly positive, fueling high expectations for the brand's future.
Next up is Xpeng Motors. Its latest model, the MONA M03, recently launched to much fanfare due to its surprisingly affordable price. Xpeng dealerships have been bustling with customers eager to test drive and place orders for the new model, which is seen as a sales driver for the company.
Prior to the MONA M03, Xpeng's sales had been impacted by changes in its brand and channel strategies. While models like the G9 and X9 performed well in their respective segments, Xpeng needed a game-changing model akin to the once-popular P7 to reignite market interest. The MONA M03 carries significant expectations, not only as a new model but also as a showcase of Xpeng's intelligent driving technologies cultivated over the years.
With the MONA M03's positive market reception, it appears that the model has already achieved its initial goals.
Lastly, among the new forces, Nezha Auto ranks last. In August, Nezha delivered a total of 11,005 vehicles, successfully surpassing the 10,000-unit mark. The Nezha S Shooting Brake version has been launched, with the pure electric CIIC 800V model now available for pre-order.
To be honest, Nezha Auto is the most enigmatic of the five. Its messaging across various product lines lacks clarity. For instance, the Nezha L gives the impression of a rushed-to-market model with a unremarkable exterior design that resembles a facelifted Nezha X. With the addition of a fridge, it has been perceived as a budget alternative to Li Auto vehicles. Despite its competitive pricing, Nezha Auto's messaging remains unclear.
Prior to the Nezha L, Nezha Auto's new model launches since 2023 have not significantly boosted sales. Instead, the company has focused on overseas expansion, particularly in Southeast Asia and South America. Despite being the only one among the top five new forces not to have undergone an IPO and consistently operating at a loss, Nezha Auto leads the pack in overseas deliveries. This inconsistency raises questions about how the company plans to balance its domestic and international markets and whether the Nezha S can become a best-seller to turn around its domestic performance. These are all issues that remain to be seen.
Photo credit: Automaker official