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Price war fears grip China’s EV market after woeful July sales figures
Three premium Chinese electric car makers saw sales decline in July, intensifying concerns that the industry is heading for another discount war
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Daniel Renin ShanghaiPublished: 7:00am, 3 Aug 2026The bearish sentiment surrounding China’s electric vehicle (EV) sector has intensified after three premium carmakers reported weak sales for July, further heightening concerns that the market is heading for another brutal price war.
EV makers Xpeng, Nio and Li Auto all reported month-on-month sales declines last month, as demand for intelligent cars weakened amid an economic slowdown in mainland China.
Xpeng delivered 38,027 vehicles to customers in July, down 5.2 per cent from June, as the firm’s four-month streak of increases came to an end.Nio also saw its monthly sales falter after posting back-to-back increases in May and June, with deliveries down 11.5 per cent month on month at 35,934 in July.
Li Auto, meanwhile, logged its fourth consecutive month of declining sales, as deliveries fell 1.4 per cent from June to 30,468.
Other major Chinese EV players managed to eke out sales upticks in month-on-month terms, but their deliveries were still far lower than during the same period last year.
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