Li Auto Leads the Pack in Q2 with Stellar Profits While XPeng and Nio Struggle to Catch Up

The second quarter of 2024 witnessed notable performances from "Wei Xiao Li" – the three Chinese EV startups Nio, XPeng, and Li Auto - highlighting the dynamic competition in China's burgeoning electric vehicle market.

Li Auto reported impressive figures, underscoring its growth trajectory and strong market presence. The company achieved a revenue of CNY 31.7 billion, a 10.6% year-on-year increase, along with continuous profit-making for the seventh consecutive quarter. Li Auto's net profit stood at CNY 1.5 billion with an operating efficiency that remains robust.

On the technological front, Li Auto's devotion to R&D is evident, with CNY 3 billion spent on smart driving and electric vehicle technologies. The firm delivered 108,581 vehicles in Q2, marking a 25.5% increase compared to the same period last year. Its efforts paid off with a notable presence in the market for vehicles priced above CNY 200,000.

The quarterly highlights also saw Li Auto pushing new software updates, such as OTA 6.2, which opened new functionalities like auto emergency braking at low speeds and a no-map needed navigation system nationwide. By integrating advanced systems like visual language models, Li Auto aspires to set new industry standards.

Joining the competitive landscape, XPeng Motors revealed a revenue of CNY 14.66 billion, soaring by 61.2% year-on-year. Despite a net loss of CNY 2.65 billion, XPeng narrowed its deficit and improved its gross margin to 14%. XPeng’s delivery of 52,028 units in the first semester depicted its growth momentum.

Nio, on the other hand, reported a relatively challenging quarter with an operational revenue of CNY 9.91 billion and a net loss of CNY 5.18 billion. Although Nio’s revenue showcased a decline, the company managed to reduce its loss margin. With a 9.2% vehicle gross margin and significant R&D expenses, Nio emphasizes long-term investments over short-term profitability.

Overall, the second quarter defended the burgeoning prospects of the Chinese EV market, with Nio, XPeng, and Li Auto navigating the complex landscape through varied strategies.