Chinese electric vehicle (EV) makers Leapmotor and Xpeng reported record sales last month, spurred by the popularity of their inexpensive cars, as a price war faded following Beijing’s intervention to cool the market.
After EV builders held back on discounts and interest-free loans to comply with Beijing’s call to end a brutal price war, intelligent battery-powered cars priced at around 100,000 yuan (US$13,888) became the primary choice for budget-conscious consumers.
Hangzhou-based Leapmotor, backed by Fiat owner Stellantis, broke its sales record for the third consecutive month, delivering 50,129 vehicles in July, up 4.4 per cent from June. The number represented a year-on-year jump of 127 per cent.
Guangzhou-based Xpeng, partly owned by Volkswagen, delivered 36,717 cars to customers in July, up 6.1 per cent from the month earlier and a 229 per cent gain year on year. The volume beat the company’s previous record of 36,695 units set in December.
“The two carmakers maintained their strong momentum because their vehicles were highly competitive in terms of both pricing and technological strength,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “Most consumers are opting for cheaper models due to worries about job prospects and wages.”
Xpeng, viewed as a premium EV maker in mainland China, launched the Mona 03 midsize, fully electric sedan last August to take on Tesla’s Shanghai-made Model 3.
