China June new energy vehicle sales increased due to mid-year rush, July sales may stabilize

June Overview: In June 2024, China's NEV sales reached 1.049 million units (including exports), up 10% MoM and 33% YoY. The implementation of the trade-in policy in June, together with the launch of new models by producers and mid-year sales push by car companies, led to a positive trend in NEV sales.
In July, NEV sales are expected to largely stabilize, with exports potentially declining due to the implementation of European tariffs, while the domestic market is still expected to be strong.
BYD's sales in June reached 340,000 units, with DM hybrid models accounting for 57%, showing impressive performance. In H2, BYD plans to release new models equipped with the DM hybrid platform, which is expected to further increase its hybrid share. Meanwhile, since hybrid models have lower battery capacity, the upward trend in sales may have limited impact on battery demand.
Tesla's deliveries in China in June were around 59,000 units, up 4,000 units MoM, but down 24% YoY. Recently, Tesla launched a 0% interest rate loan promotion valid until July 31, which may continue to boost July sales.
Geely Group's NEV sales in June were 66,000 units, with NEVs accounting for nearly 40% of its total sales. Given this year's strong performance, Geely has raised its annual sales target by 5%.
GAC Aion's sales in June were 35,000 units, down 13% MoM and 22.18% YoY. Aion's poor performance this year is due to two main reasons: first, the growth rate of demand for ride-hailing vehicles has slowed; second, there is intense price competition in its price range.
Li Auto delivered 48,000 units in June, up 16% MoM and 46.7% YoY. Among them, deliveries of Li L6 equipped with LFP batteries exceeded 20,000 units. With the launch of intelligent driving in July, Li Auto's subsequent sales are expected to further increase.
"HarmonyOS Smart Mobility" (including brands like AITO and LUXEED) delivered 46,000 units in June. The new AITO M7 Ultra began mass deliveries in June, driving positive growth. The driving force for new models includes the STELATO S9, a collaboration with BAIC, expected to be launched in July, equipped with CATL ternary lithium batteries. Additionally, the LUXEED R7, a collaboration with Chery, is expected to be launched in September.
Xiaomi's deliveries in June exceeded 10,000 units for the first time, with stable subsequent orders expected.