As August arrived, major car manufacturers have released their July sales figures, with overall growth appearing relatively tepid compared to June. However, several brands have demonstrated strong performance, bucking the trend and maintaining market leadership.
Byd Company Limited (01211) led the entire industry, selling 419,200 vehicles for the month. Meanwhile, LEAPMOTOR (09863) continued to dominate the new energy vehicle (NEV) startup segment, recording 101,300 units sold, making it the first Chinese NEV startup to surpass 100,000 monthly sales and significantly widening the gap with its competitors. The current domestic NEV penetration rate has approached 60%, leaving limited room for market share substitution. As a result, exports have become a new battleground for automakers, with lower overseas penetration rates offering substantial growth potential. Most exporting companies reported positive sales results.
Looking at the traditional automakers' rankings, the top five were Byd Company Limited, SAIC, Chery, Geely, and Changan, with sales of 419,200, 338,600, 261,900, 250,200, and 207,100 units respectively. Chery's sales grew by 24.1%, with all five of its brands achieving growth. Domestic brands showed strong export performance, with Chery's July exports reaching 202,500 units, a 70.1% year-over-year increase, while Geely's exports hit 107,000 units, surging 202% year-over-year. In contrast, SAIC's performance was mixed, dragged down by its joint venture brands, with SAIC Volkswagen and SAIC General Motors seeing sales declines of 32.7% and 7.45% respectively for the first seven months.
Among NEV startups, the divergence was significant. LEAPMOTOR led with 101,300 units sold in July, a 102% increase, marking the first time a startup has entered the 100,000-unit monthly sales club. XPeng ranked second, but its growth was relatively sluggish. NIO saw a 71% increase in sales, driven by its new Onvo and Firefly brands. Li Auto showed signs of weakening momentum, with both month-over-month and year-over-year declines. Xiaomi maintained stable performance, consistently selling over 30,000 units per month with its two models.
Examining successful leading automakers reveals common characteristics: a focus on product development and market expansion rather than price competition. Byd Company Limited covers all market segments through its five passenger vehicle brands, from the mass-market Dynasty and Ocean series to the luxury Yangwang brand. Its proprietary technology, including fast-charging capabilities and the second-generation Blade Battery, creates competitive barriers. Exports have become a second growth engine, with July exports hitting a record 180,500 units, accounting for 43% of total sales. The company projects full-year overseas sales of 1.8-1.9 million units, a 75% increase.
LEAPMOTOR has adopted a different success path, focusing on creating "big hit single products" for specific demographic groups. Its main C-series and B-series models are SUVs targeting young consumers in the 100,000-200,000 yuan price range. The D-series, its first MPV, moves up to the 200,000-300,000 yuan bracket while offering more features than competitors. The company now operates in over 40 countries and regions, with global channel outlets exceeding 2,000, including nearly 1,000 overseas. Its cumulative overseas exports for the first half of this year reached nearly 100,000 units, surpassing last year's total.
While expanding overseas, automakers are also seeking new growth drivers, such as leveraging R&D and manufacturing advantages to partner with third-party platforms for autonomous driving applications in robo-taxis and developing humanoid robots. However, these businesses are still in early commercialization stages.
In summary, July's sales results were mixed, with traditional and NEV startup leaders strengthening their positions. Domestic brands' export growth surged, driven by low overseas NEV penetration and geopolitical factors. The Hong Kong-listed auto sector has experienced a deep correction over the past year, but since late June, the sector has rebounded over 20%. While industry growth slowdowns continue to cap valuation increases, strong overseas sales and emerging growth drivers, combined with the significant correction in some stocks, offer opportunities for bargain hunting. The sector may be entering a new upward cycle, with leading companies likely to attract institutional interest.
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