Tesla loses the throne in China sales to Wuling and drops sixth, and BYD Qin is second with 1.3 million vehicles

Sales of electric cars continue to climb, setting record levels in car sales in China, with car sales reaching 231,000 units in July, just 4,000 less than the record set in the previous month of June in which purchases of 235,000 electric cars were recorded. This brought the year-to-date figure to 1.3 million units, with car sales in the first half of this year exceeding all electric car sales in China for all of 2020. Remember, we’re only in July.

In terms of share, July kept shares at record levels, at 15%, with 12% electric cars and three percent BEVs. Given that the second half of the year is usually the strongest in auto sales in China, we can now safely assume that the electric car market share in the country will end above 10% 15% this year, and the total number for the year will definitely exceed 2 million deliveries!

Looking at the best-selling cars in July, the biggest news was the absence of Tesla models, and this happened for the first time since December 2019. Here are the top 5 best-selling models in the Chinese market during the month of July in more detail:

1 – Wuling HongGuang Mini EV

With 30,706 records last month, the small four-seater continued to advance, winning yet another best-selling car title. And if the Wuling pickup continues at this pace, the result will likely be a sales increase above 400,000 by the end of the year for the pickup alone. The numbers indicate that sales of this type of small-sized car may be able to Wuling to break the barrier, especially after it became one of the most famous cars in the Chinese market.

This opens up prospects for exporting the four-seater compact car to foreign markets. The Wuling EV has become a force in China’s urban commuting operations, and has gained a huge following, but the added surprise is that the people who buy it (mostly female, even mostly under 35), and this type of buyers are usually difficult attracted them.

Indeed, this electric car has become a game-changer, but as in every success story, one wonders what impact replicas will have on the competition as they try to match the tiny Wuling—and perhaps steal some sales away.

2 – BYD Qin Plus PHEV

The BYD Qin has been the Chinese automaker’s bread and butter for a long time, but in the past few years, it seems to have been swayed by the arrival of new, more competitive models. And the Chinese brand BYD had launched in 2018, a new generation of small and medium-sized sedans, called Pro, but it failed to achieve the success that the company expected, so early this year it launched an updated version,

By revisiting the success tide of its European dazzling second place electric Han full-size sedan, BYD has even bolded itself into everything with the slightly smaller Qin Plus model. It released a PHEV model, and of course that meant two versions, one with a lower price tag with an 8.5 kWh battery and 55 km (34 mi) range on the new European driving test cycle (which is overly generous), and the second version of the class with an 18.3 kWh battery. The watch has a best-in-class range of 120 km (75 miles).

The new thing about this new generation is that the internal combustion engine mostly acts as a range extender, which improves efficiency. A model update added to the new PHEV specification (and LFP batteries) transformed the BYD sedan’s career. It sold well, and the PHEV version reached 9,127 records last month, allowing it to take home the silver for July. And if we were to add BEV versions to the count (number 10 in July, yielding 5,342 cars), the Qin Plus would have 14,469 purchase records…which is already Tesla Model 3 territory!

3 – Changan Benni EV

At first sight, compared to the smart-like Wuling EV, Changan’s lower offering (29,800 yuan, or less than 4,000 euros) looks more significant with a 23 kWh battery, Toyota Yaris-like size, 5-seater capacity, and a trunk ! But then you look at what you get for that price and… Welcome 2010 – The Basics 2010. Hey, one can’t expect miracles, right?

Moving on, Changan’s small electric EV was attractive enough to deliver 8,701 units in July. The Changan EV is the largest model among the Wuling Mini-killers (similar cars launched by SGMW competitors), but it’s the most bone-worthy model, too. All in all, it seems likely that the Benni EV will maintain its appeal among young urban families, as well as other car-sharing and fleet companies.

4 – Li Xiang Wan

Li Auto, the Chinese startup that lives in the shadow of more media and all-electrics such as NIO and Xpeng, sells one full-size SUV with remarkable success, and in July took another record performance (second in a row), delivering 8,589 units. . This allowed it to reach the podium position in its class, beating BYD Han EV by 3,000 units. of electric vehicle sales in China.

With this success, the startup’s next step was expected to be to follow the trend and go down in the market, with a smaller and, above all, cheaper model. But Li Auto appears to be a bit of a bad boy among Chinese electric car startups – they don’t stick to the rules (just look at the powertrain).

Its next step is to launch a larger SUV (as if the 5m model wasn’t big enough…) and it will launch it in 2022. One can expect to have some kind of land yacht the size of a Cadillac Escalade with better space zoning for kids In-laws, the dog, whatever you can think of…with extended range technology. Will this strategy succeed in taking a place in electric vehicle sales in China?

Who knows – few people thought the unique EREV powertrain would be a hit, and yet it wears a bronze medal. With a 41kWh battery and equipped with fast charging capabilities, it’s more efficient and has better electric range than its PHEV competitors, like the BYD Tang PHEV, but on the other hand, it’s cheaper than similar full electric proposals, like the NIO ES8.

5 – BYD Song Pro PHEV

BYD’s first song lived in the shadow of her sister Chen, as the Chinese are well known to prefer sedans over SUVs, but in the past few years, higher ride bodies have become more and more popular. When BYD launched its second generation Song in 2019, called the Pro, which was between small and mid-size, it had high hopes for this car, but it failed to achieve the success that the company expected.

So, early this year, it launched an updated version, with better specs (and LFP batteries), that changed BYD’s all-wheel drive career. The Hybrid PHEV reached 7,085 records last month, its third record in a row (!), which means production is still ramping up at full speed. And if we were to add the BEV version to the count (2,605 units in July), the Qin Plus would have 9,690 registrations in July…which is roughly the area of ​​a Tesla Model Y.

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Electric vehicle sales from 6-20

Looking at the rest of the list of best-selling electric cars in July, one can say that it was a near-record month in electric car sales, with 10 models and models (!) achieving record performance. Along with the aforementioned BYD Song Pro PHEV and Li Xiang One, there is also a reference to the record scores – in seventh place is the XPeng P7 which sold 6054 units, for its second consecutive record score, and in tenth place is the BYD Qin Plus 10 BEV, sold (5,342 units, recording figures for the third month in a row),

In 11th place stands the SAIC Roewe Clever EV (5,202 units), 13th is the Hozon Neta V (4,469 units), and 14th stands the Leapmotor T03 (4,283), #19 Weltmeister EX5 (3,373), #20 Letin Mango EV (3,243), and … VW ID.4, ranked 16, which finally took the top 20 thanks to a 3,867 records set. Will Volkswagen remain the crossover or will it be swallowed up by the frenetic growth in the market?

Speaking of frenetic growth, out of the seven models in the top 20 electric car startups, 6 scored a record month, 3 of them (Li Xiang One, XPeng P7 and WM EX5) for the second month in a row, while only one, the LeapMotor T03 , which set 3 record shows in a row! It is clear that Chinese electric car startups are growing rapidly and gaining scale.

Those seven models alone accounted for 15% of all plug-in registrations last month, which is already more than what the market leader, Wuling Mini EV, had. But this month wasn’t just about startups and scoring. BYD posted a strong showing in July, with 6 models in the top 20.

The Tang PHEV midsize SUV scored 3,892 records, its best result since March 2019, while the recently updated Yuan EV compact crossover (including the new Blade battery) posted its best performance. At 25 months, with 3,785 units. Thus the larger Chinese sign was noisy across its range, from the lower end (Yuan) to the upper end (Han).

We expect both parties to be strengthened. Cost-competitive Dolphin is looking to disrupt the compact/sub-brand side of the market soon, while on the other end of the spectrum, BYD is expected to release the powerful Ming SUV in 2022, a full-size SUV that comes in two versions, with a family-friendly seven-seater and body SUV coupe.

Adding to the current success of the category leader I mean BYD Han has sold (60,000 units and not yet completed 2021) and as per expectations BYD full-size sales should climb to over 150,000 units/year. Therefore, Tesla and the old OEMs are going to cut them off if they want to beat BYD at the higher end of the market.

Tesla down the sales slope

Speaking of Tesla, numbers were low (surprisingly and even shocking to some) in July, especially in the case of the Tesla Model Y, which scored its lowest score (2,397 units) since February. Of course, this was enough for both ends of the Tesla cult to go after each other, with the faithful side saying that only meant that production of both models was now operating in Tesla’s normal fashion (twice the first month of the quarter. Domestically in order to focus on exports, while the second month was more balanced, and the third month with a focus on close deliveries),

While the lower side claims that this shows that the demand slope in China is real, well, like most things Tesla, both sides of the analysts are going the wrong way motivated by just seeing them, while it is true that this result is exceptionally low, it should not be repeated at any time. close. And there are reasons for that – not only did production of both models take place, but also that the release of the upcoming SR version of the Model Y dominated new orders.

And there are rumors that 70% of new Tesla orders in China are getting down to this version), creating a waiting list that will almost certainly deliver several thousand deliveries in the next two quarters of the year. On the other hand, the fact that a Tesla Model Y already exists, as well as the fact that Tesla decided to release the SR version only in China, says a lot about the current demand dynamics.

On the other hand, demand for Tesla in North America is on fire, causing the automaker to raise prices and focus on producing Fremont (and upcoming Texas) Model 3/Y models in the home market, even as its new car left the Cybertruck, and neither side focused. ( Due to recent battery issues , which means that the Giga Texas plant will not be able to meet the expected slow rise of the Cybertruck this year).

On the other hand, Tesla’s demand in China appears to be steady, especially in the case of the Model Y, which has led to the launch of a cheaper Standard Range version of the Model Y in China. It is also presumed that this is one reason why Tesla has exported Shanghai units to other markets, such as Europe and Australia, freeing up space in Fremont for local demand. Tesla has jumped to supply its long-awaited Tesla Model Y to electric-vehicle-hungry Europe from China now, and only German Tesla units are expected in 2022. It is also fitting that Tesla will supply Australia and other markets with Model Y units earlier than expected.

In a way, one could argue that lower demand in China has been good for Tesla buyers outside North America, as it allows them to avoid the increasingly long waiting lists (and price hikes) that Tesla buyers in North America now experience. These help buyers, in this regard, not have to wait longer while exporting some US-produced units.

One interesting fact: The Tesla Model 3 actually scored roughly the same number of deliveries in April as it did in July, which allowed it to be the runner-up at the time, but now the same amount of units makes it only number 6 on the table. What has changed? Just caught the competition. …

The 20 centers for sales of electric cars

But going back to July’s China sales under the top 20, we should mention that increased production for several models, such as the #21 GAC Aion Y achieved (3,109 records in its fourth month on the market). And it looks like the MPV zip platform is headed for higher places and should hit the table in August. In addition, Geely Emgrand EV, which was once a familiar face on the table, is making its magic again, registering 3,068 units, its best result since June 2019.

Also, we have another BYD looking to join the table, as Song Pro EV has a record 2,605 records and should join the table soon. Finally, there is a nod to another Chinese electric EV startup, Lingbao, which is starting to get some traction with its oddly small box, an electric car that offers a mix between the Mini Cooper EV, Honda E, Fiat 500L and Japan’s Kei sedan that has Delivered 2,605 units, setting its fifth consecutive record.

While Chinese brands are present in many competitive model car categories, it is in the city car segment that I see them owning the market on a global level. Japanese automakers are in electric car denial, Indians are still making small steps toward electric cars, and Europeans are leaving the cheap and cheerful end of the electric city car market in order to focus on the more premium end of the class (Fiat 500e, Mini EV, Smart EV). ). We expect Chinese automakers to dominate the city car segment globally once the electric transition is completed.

Looking at the 2021 ranking, the top positions remained unchanged. The change only came in first place coming from rank No. 5, with Li Xiang One constantly climbing two places. With the full-size class leader, Han is fourth, with BYD Han EV (now why do I think it’s wrong not to make the Model S/X domestically?), just under 6,000 units, and I expect the market to push big SUVs like the BYD EV to take its place. In the race for the category title.

Another company that also rose two spots was Changan Benni EV, now at number six, having overtaken Ora Black Cat in July. In the second half of the table, things were even more interesting, as the small Leapmotor T03 climbed to 15th place. With another starter model, the Hozon Neta V, it climbed to 13th.

We also have a new face in the top 20! BYD Song Pro PHEV joined the table in 16th place – and we expect it to climb a few more positions (top 10?) soon. And outside the top 20, we have another BYD about to hit the table, with the Qin Plus EV at number 22, nearly 1,000 units behind the #20 BYD e2, and just under 100, and we may have a sixth BYD model in the top 20…soon.

Looking at the automaker’s ranking, SGMW’s joint venture (17%, down 1 percentage point) is in the lead, but it could lose the rankings, threatened by BYD’s advantage (15%, up 1 point) on its way up, ahead of Tesla (11%, down). one point). The Shenzhen automaker is now focused on regaining its leadership position and winning its eighth title.

It’s funny that the current podium for 2021 is the same as the podium for 2020. So will Tesla stay like this until the end of the year? Below the podium, while SAIC (7%) settled in fourth place, followed by Great Wall Company No. 5 (5%) and a number of automakers with a 4% share.