Leapmotor, Xpeng Hit Record July Sales as Budget EVs Gain Ground in China
- tech360.tv
- Aug 4
- 2 min read
Chinese electric vehicle makers Leapmotor and Xpeng posted record-breaking sales in July, driven by strong demand for affordable EVs following Beijing’s move to end a fierce price war.
Leapmotor, based in Hangzhou and backed by Stellantis, delivered 50,129 vehicles in July, marking a 4.4% increase from June and a 127% surge year on year. This was the company’s third consecutive monthly sales record.
Guangzhou-based Xpeng, partly owned by Volkswagen, delivered 36,717 vehicles in July, up 6.1% from the previous month and a 229% increase compared with the same period last year. The figure surpassed its previous record of 36,695 units set in December.
The sales boom followed Beijing’s intervention in May to cool the EV market. The Ministry of Industry and Information Technology warned that carmakers leading price cuts would face penalties, prompting many to scale back discounts and interest-free loans.
As a result, EVs priced around 100,000 yuan (USD 13,888) have become the top choice for cost-conscious buyers. Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, said consumers are favouring cheaper models due to concerns over job security and wages.
Xpeng, traditionally seen as a premium EV brand, launched the Mona 03 midsize electric sedan last August to compete with Tesla’s Shanghai-made Model 3. The Mona 03 starts at 119,800 yuan, less than half the price of the Model 3, which retails at 263,500 yuan.
Leapmotor has gained popularity among young drivers with its smart EVs priced around 100,000 yuan. The company has become one of China’s fastest-growing EV manufacturers, with nationwide deliveries from January to July rising 150% year on year to 271,793 units.
Fitch Ratings noted that demand for both petrol and electric vehicles may soften this quarter due to the end of the price war. However, it expects a rebound in the final quarter as buyers rush to benefit from tax incentives before they are phased out.
Currently, EV buyers in mainland China are exempt from a 10% sales tax. From January 2026 to the end of 2027, a 5% tax will apply, increasing to 10% in 2028.
Xiaomi, a smartphone maker turned EV start-up, also reported strong performance in July, saying deliveries exceeded 30,000 units. The company’s YU7 electric SUV received 200,000 pre-orders within three minutes of opening bookings on June 26, rising to 240,000 the next day.
This level of demand is rare in China, where monthly sales of 10,000 units for a single model are typically considered a success.
Leapmotor delivered 50,129 vehicles in July, up 127% year on year
Xpeng set a new record with 36,717 vehicles sold, a 229% annual increase
Beijing’s crackdown on EV price wars shifted demand to affordable models
Source: SCMP
