NIO - New energy vehicle sales in China reach a new record in June

According to data released by the China Passenger Car Association or CPCA, it is expected that retail sales of new energy vehicles (or NEVs) in China will surge 102.5% Y/Y to  450,000 units in July. All passenger vehicles in July are expected to be around 1.77M units, up 17.8% Y/Y.

In June: wholesale sales of NEVs reached a new record of 571,000 units, with retail sales reaching 532,000 units. Previous best figure was 505,000 back in December 2021.

Also subsidies given on purchase of NEV products would aid growth until these subsidies are completely removed by the end of the year.

Backdrop : China's Ministry of Finance articulated on reduction of subsidies for NEVs each year in April 2020, saying that in principle the subsidies will be reduced by 10%, 20%, and 30% each year from 2020-2022. Hence according to the plan, no subsidies will be provided by 2023.

EV makers expected to increase their production capacity in H2 of 2022.

Overall, car registrations in China increased to 2.22M in June from ~1.62M in May of 2022.

EV manufacturers include: NIO ( NIO ); XPeng ( XPEV ); Li Auto ( LI ); Tesla ( TSLA ); BYD Company ( OTCPK:BYDDF )

Related ETFs: Global X Lithium & Battery Tech ETF ( LIT ); Global X Autonomous & Electric Vehicles ETF ( DRIV ); KraneShares Electric Vehicles & Future Mobility ETF ( KARS ); Simplify Volt RoboCar Disruption and Tech ETF ( VCAR ); SPDR S&P Kensho Smart Mobility ETF ( HAIL )

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