New Tech Fuels China's Tesla Rivals to Monthly Sales Records

Despite cautious market expectations, Leapmotor and Zeekr each achieved record performance for the second month in a row.

Chinese Tesla challengers Leapmotor With their newest battery and autonomous driving innovations, Zeekr defied a decline in local electric vehicle sales by achieving record shipments this past month, increasing scrutiny on the American automaker as public confidence wanes for high-cost purchases.

Leapmotor, supported by Stellantis, sold 93,376 electric vehicles (EVs) in the previous month, marking a 94.5 percent increase compared to the same period last year, setting another new sales record for the second month in a row.

Zeekr, an upscale electric vehicle division of Geely Auto China's second-biggest automaker also broke its delivery record for the second consecutive month in June, with sales reaching 35,169 vehicles, marking an increase of 110.6 percent compared to last year.

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Two automakers, alongside Xpeng, Nio, and Xiaomi, are standing out as the success stories in China's electric vehicle market this year, yet they make up only a tiny part of the nation's broader EV sector," noted Eric Han, a senior manager at Shanghai-based consulting firm Suolei. "Their innovations and appealing new models have significantly boosted sales.

Tesla has not yet released the number of vehicles delivered in China from last month, although its Shanghai Gigafactory currently produces only Model 3 and Model Y cars costing more than 200,000 yuan (US$29,441).

A company based in Hangzhou, called Leapmotor, produces and sells medium-sized intelligent electric vehicles for about half the cost of similar Tesla models.

In May, Tesla’s plant in Shanghai provided 47,281 cars to buyers across Mainland China, marking an increase of 22.5 percent compared to the previous year, as reported by the China Passenger Car Association.

Chinese electric vehicle manufacturers and parts providers currently hold strong positions in both the local and international EV markets, supported by their competitive costs and technical strengths.

Tesla led the luxury segment in China — where electric vehicles exceed 200,000 yuan — for five years before Xiaomi's all-electric SU7 surpassed Tesla's Model 3 in sales last year.

A historic high of 156 new car models are anticipated to enter the Chinese automotive market during the latter part of the year, according to experts who believe this will probably drive a fresh phase of cost rivalry As automakers seek to lower surplus stock.

This week, global consulting firm AlixPartners forecasted a 10 percent decline in China's automobile sales for the current year due to an unstable economic environment and reduced governmental backing.

It mentioned that leading athletes might expand their market presence as they were more capable of enduring the pricing competition that would trap almost all of the nation's over 100 automakers.

Nio, based in Shanghai, provided 40,597 cars to both local and global clients during the previous month, marking an increase of 62.9 percent compared to the same period last year and achieving its highest monthly performance this year.

Xpeng, which is based in Guangzhou and partially owned by Volkswagen, also achieved a yearly peak in deliveries, increasing by 15.9 percent compared to the previous year, reaching 40,126 units.

The leading electric vehicle manufacturer globally reported sales of 403,472 units in the previous month, representing an increase of 5.5 percent compared to the same period last year.

The mobile phone manufacturer and electric vehicle startup Xiaomi announced that its delivery numbers for June surpassed 30,000 units.

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The article was first published on the South China Morning Post (www.scmp.com), a top-tier news outlet covering developments in China and Asia.

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