Juanmonino
Sales of electric passenger vehicles in China rose 10.5% year-over-year in March to 1.03M units, according to data from the China Passenger Car Association. For Q1, electric vehicle sales rose 14.7% year-over-year, which was the slowest pace seen since Q2 of 2023. Overall, new energy vehicles including all-electric models and plug-in hybrids made up 41.5% of overall passenger car sales in March, which jumped 5.7% to 1.71M vehicles.
The unit growth was sparked by discounts from automakers such as BYD Company (OTCPK:BYDDF) and government initiatives that included revising new car loan rules. Electric vehicle makers Tesla (TSLA), Volkswagen (OTCPK:VLKAF) and Nio (NIO) have also introduced new financing offers in China.
Of note, Nio (NIO) announced that it opened the company's new Smart Driving Technology Center in Schönefeld, Germany, near Berlin. The center was highlighted as representing a significant step in Nio's (NIO) global strategy, enabling innovation and delivering cutting-edge Smart Driving solutions for the European market.
Electric vehicle stocks with a presence in China rose in midday trading on Tuesday due to the March numbers showing some sequential momentum for the sector against lowered expectations. XPeng (NYSE:XPEV) +8.27%, Nio (NIO) +5.42%, BYD Company (OTCPK:BYDDF) +2.98%, Kandi Technologies (KNDI) +2.94%, Tesla (TSLA) +1.17%, Li Auto (LI) +1.11%. All those stocks are still in negative territory for 2024 due in a large part to concerns over margins and profitability amid an ongoing pricing war.