There is so much more to electric vehicles than we are imagining, and despite the sales crisis of the EV market in 2019, it has actually bounced back in China to make its own place.
The EV market in China had been overgrowing due to highly incentivized measures by the government that helped increase the use of EVs.
However, in 2019, the Chinese government held back on EV subsidies leading to a decline in auto sales and the eventual fall of the sparkling EV market. However, the turn of events in 2020 saw auto sales booming again following the extension of EV subsidies by the Chinese government. Now, EV sales in China are at their highest on a monthly basis. Furthermore, the EV market persisted even after the 2019 crisis coming back to its own pace of increasing demand showing there is a lot to come.
From now, it is forecasted that the EV growth in China is bound to continue for the next few quarters with the new subsidy programs. Also, auto sales are expected to rise as a result of consumer awareness through Tesla’s entry in China. This comeback has introduced a considerable interest and craze among investors about the EV market.
If we talk about the NIO delivery trends in 2019, it made the investors anxious as the company’s premium EV mindshare was dropping. However, in 2020, the delivery trends reversed with the increasing demand for the ES6, the company’s 5-seater premium electric SUV, and the ES8, the company’s 7- and 6-seater variant.
On top of that, there has been a tremendous increase in the deliveries of NIO vehicles in the past few months. In March, there was an increase of 116.8%. April — 105.8%. May — 215%. And believe it or not, Nio car deliveries in July increased by more than 300% as the manufacturer increased its production to meet rising demand.
Last month, Nio delivered 3,533 electric SUVs in China, which is a 322% boost from last year but a small 5% decrease from June. July’s total deliveries comprised of 2,610 ES6 models and 923 ES8 models. Adding up, in 2020, Nio, now known as the Tesla of China, has delivered a total of 17,702 electric SUVs.
Deliveries of the EC6 electric coupe SUV will be initiated from September. Thus, the EV market will remain the fastest growing industry, considering the massive increase in demand and the launch of the EC6. With the ever-growing demand and interest among people, this is bound to make an impact.
Besides, it is unofficially known that Tesla increased its production in July in China since the EV production boosted up in the most significant and fastest-growing EV market.
Shares of Nio, reporting for the second quarter next Tuesday, rose by 14% to 13.60 on the stock market. Tesla stock, on the other hand, boosted up 3.8% and is above the purchasing points of 869.92 and 1,027.58. Li Auto stock increased by 2.25% after it announced the launch of two electric cars in the US.
Amidst the increase in new electric car stocks, Xpeng has raised $300 million capital from investors while looking forward to IPO in the US According to Reuters, Xpeng that recently launched the Xpeng P7, a Tesla Model 3 rival, will soon be joining Li Auto stock.
This rapid increase and excitement for electric car stocks can be associated with the rise in demand for eco-friendly and zero-emission vehicles. Interestingly enough, this innovation is being encouraged by governments and car manufacturers. Considering all the numbers and facts, it can be concluded that, in all likelihood, the EV market is not going to shatter any sooner.
Looking over the popularity of electric car stocks lately and with NIO and Tesla stocks boosting up, we can expect that electric vehicles have developed enthusiasm among the consumers and investors, leading us to conclude that electric cars are here to stay for much longer than anticipated.
Source: Nio
