China EV Stocks 'Seismic Shift'...BYD and Xiaomi, Delivery Volume Explodes

▲ China, Electric Vehicle, BYD, Xiaomi/AI-generated image

Chinese electric vehicle (EV) stocks are buzzing again on signs of recovery in June deliveries. BYD and Leapmotor led the sales rebound, while Xiaomi recorded over 30,000 deliveries for three consecutive months, shaking up the Chinese EV competition.

According to U.S. economic media CNBC on July 2 (local time), the consecutive release of June delivery figures by Chinese electric vehicle (EV) manufacturers drew investor attention to major EV stocks. Amid continued slowdown in domestic demand and pressure from price competition, some companies mitigated market concerns with overseas sales and new model effects.

BYD (BYD, 1211.HK) recorded new energy vehicle sales of 403,472 units in June, a 5.46% increase year-on-year. This marks two consecutive months of year-on-year growth, following May. Overseas sales surged by 94.73% to 175,349 units, setting a new all-time high. In contrast, domestic sales in China fell by 22.02% to 228,123 units.

BYD's sales recovery in June was largely driven by the overseas market, which virtually supported the entire growth. The proportion of overseas sales in June rose to 43.46% of total new energy vehicle sales. With the EV price war in China pressing margins, expansion into overseas markets such as Europe and Latin America has emerged as a key defensive line.

Xiaomi (Xiaomi, 1810.HK) announced that its EV deliveries exceeded 30,000 units in June. Specific model-wise figures were not disclosed. This marks the third consecutive month of exceeding 30,000 deliveries. Xiaomi has set an annual delivery target of 550,000 units for 2026 and needs to maintain strong delivery momentum in the second half of the year to achieve this goal.

The performance of emerging Chinese EV manufacturers was mixed. Leapmotor (Leapmotor, 9863.HK) delivered 93,376 units in June, a 94.5% increase year-on-year. Nio (Nio, NIO) delivered 40,597 units, up 62.9%, and XPeng (XPeng, XPEV) delivered 40,126 units, an increase of 15.9%. Li Auto (Li Auto, LI) delivered only 30,895 units, a 14.8% decrease year-on-year. The Chinese EV market is showing both signs of recovery and demand slowdown simultaneously, making the stock differentiation among companies more pronounced.

[Key Article Summary]

-BYD sold 403,472 new energy vehicles in June, marking two consecutive months of year-on-year growth.

-Xiaomi continued to deliver over 30,000 EVs for three consecutive months, expanding its presence in the Chinese EV market.

-Leapmotor, Nio, and XPeng saw an increase in deliveries, but Li Auto experienced a double-digit decline, widening the gap between companies.

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