China EV makers surge back in March as subsidies and financing spur demand

Chinese electric vehicle (EV) makers posted a strong rebound in sales last month, shaking off the weak start to the year as local government subsidies and aggressive financing incentives drew in first-time buyers.

Momentum is expected to carry through the coming months, with dozens of new models set to debut at the Auto China show in Beijing, likely to stimulate fresh demand.

“The sweeping improvement in deliveries revived hopes for a steady [EV] market after a woeful performance in January and February,” said the founder of Shanghai-based data provider CnEVPost. “The sales numbers will restore industry officials and analysts’ confidence in China’s EV sector.”

BYD, the world’s largest electric-car maker, delivered 300,222 units in March, up 57.9 per cent from February. Leapmotor reported deliveries of 50,029 units, a 78.3 per cent month-on-month jump, while Nio reported sales of 35,486 EVs last month, up 70.6 per cent from February.

Other major players, including Geely Auto and Li Auto, also recorded solid gains.

The rebound was underpinned by renewed policy support at the local level. Cities from Yangzhou in east China’s Jiangsu province, to Chengdu, the capital of southwest China’s Sichuan province, rolled out cash incentives to spur purchases.

In Chengdu, first-time car buyers can receive subsidies of up to 8,000 yuan (US$1,164).