Chinese electric vehicle (EV) startups NIO, Xpeng, and Li Auto have reportedly failed to meet their sales targets for this year, according to a report by local media outlet 36kr on November 7, 2023.
Initially, NIO, listed in the U.S., had a sales target of 240,000 vehicles this year. However, from January to October, sales increased by 36.3% to 126,067 units, falling short of expectations. If the current trend continues, it is estimated that NIO will sell 158,000 units this year. Despite this, NIO has set its 2024 target at 230,000 units, a 50% increase from this year. As part of its goal to expand into 25 countries and regions, NIO plans to enter the U.S. market by 2025. NIO intends to import Chinese-made EVs into the U.S. rather than producing them locally to receive tax reductions.
Xpeng sold 101,445 units from January to October, a decrease of 2.13% compared to the same period last year. However, in October, it sold 22,000 units, a record high, marking a 292.12% increase year-on-year and a 30.65% increase from September, brightening the outlook for next year. If this trend continues, total sales for this year will exceed 140,000 units. In this context, Xpeng has set its 2024 target at 280,000 units, double this year’s figure.
Li Auto, which still relies on extended-range electric vehicles (EVs) and has not yet added battery electric vehicles to its lineup, sold 40,022 units in October, crossing the 40,000 mark for the first time. This represents a 302.13% increase year-on-year and a 12.1% increase from September. From January to October, it sold 284,647 units, an increase of 193.51% compared to the previous year.
Li Auto plans to launch eight new vehicles by the end of next year. Four of these are battery electric vehicles, each with a sales target of 150,000 units. With this, Li Auto has set a highly aggressive target of selling 800,000 units by 2024 and 3 million units by 2028. However, it remains uncertain whether these targets can be achieved as the market reaction to battery-electric vehicles is still unknown.
In other words, the targets presented by these companies are merely for reference. It’s not even clear how many EV companies currently exist in China. Sales are volatile due to various external conditions. Unlike large corporations expanding overseas through stable market establishment, startups are at a crossroads.
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