China’s EV makers reported a rebound in August deliveries after a slowdown earlier in the summer amid intense price competition.

BYD shipped 371,501 vehicles in August, up nearly 22% year-on-year.

Nio, which launched a new model in August, reached a monthly record with 31,305 deliveries, boosted by its sub-brand Onvo, which delivered 16,434 vehicles.

Leapmotor set an all-time high with 57,066 deliveries, an 88% rise year-on-year, driven by its new B01 model.

Xpeng also hit a monthly record, delivering 37,709 vehicles in August after launching its P7 model at the end of the month.

Xiaomi reported over 30,000 deliveries, similar to July’s numbers. Geely’s Zeekr saw a slight rise to 17,626 deliveries.

Li Auto recorded a third straight monthly decline, with August deliveries dropping to 28,529 amid controversy over a collision test video.

Huawei-backed Harmony Intelligent Mobility Alliance reported 44,579 deliveries in August, down from July.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Short-term sales gains mask deeper profitability crisis in China’s EV sector

The August delivery surge highlighted in the news comes at a steep cost for Chinese EV makers, who are sacrificing long-term financial health for market share.

BYD reported a 30% drop in net profit to 6.4 billion yuan ($900 million) despite strong sales performance, demonstrating how the ongoing price war is eroding margins across the industry 1.

Average car prices in China have plummeted by approximately 19% over the past two years, now averaging around 165,000 yuan ($23,100), creating unsustainable economics for many manufacturers 1.

This dynamic explains why companies like Nio, Xpeng, and Leapmotor achieved record deliveries in August. Their competitively priced new models are effectively buying market share at the expense of profitability.

The situation reveals a contradiction: while the August numbers signal market recovery, they also represent an acceleration of destructive pricing practices that threaten the industry’s long-term viability.