20240304-招银国际-Auto__Feb_NEV_sales_fell__more_new_models_from_Mar_5页_824kb

China NEV Sales Update Summary

February 2024 New Energy Vehicle (NEV) sales for 11 major Chinese automakers declined by 19% year-on-year and 39% month-on-month, primarily due to the Chinese New Year holiday impact.

Key company performances:

• BYD: Sales dropped 36% YoY and 39% MoM to 121,748 units, as dealers cleared inventory after launching the Yangwang U9.
• Great Wall Motors: Sales increased 47% YoY but fell 51% MoM to 12,253 units due to inventory reduction.
• NIO: Deliveries of 8,132 units fell 33% YoY and 19% MoM, with aggressive end-of-month promotions.
• Li Auto: Delivered 20,251 units, up 22% YoY but down 35% MoM, surpassing Aito in February by 900 units after product launches.
• Xpeng: Sales slid 24% YoY and 45% MoM to 4,545 units, with X9 model performing well but overall challenges.

Market trends indicate a likely rise in NEV market share to 32% in February, with Tesla's sales estimated at 30,000 units, down 27% MoM.

Stock ratings:

• Li Auto: BUY rating with target prices.
• NIO and Xpeng: HOLD ratings.
• BYD and others: BUY or BUY ratings as listed.

Recommendations note that March-April sales could set the tone for 2024, driven by catalysts like new models and inventory adjustments.