Core Insights - July saw a moderate growth in the new energy vehicle (NEV) market despite being a traditional off-peak season for passenger car sales, with delivery volume growth slowing down year-on-year [2][3] - The overall delivery volume of NEVs in July showed a year-on-year increase of 11.2% but a month-on-month decrease of 6.2% among 11 car manufacturers [2][3] - The upcoming months are expected to see improved sales as multiple new models are set to launch, coinciding with the traditional peak sales season in September and October [6] Company Summaries - **BYD**: In July, BYD sold 341,030 passenger vehicles, a slight year-on-year increase but a month-on-month decrease of 9.7%. Exports reached 80,178 units, a significant year-on-year increase of 159.5% [2][3] - **Xiaomi Auto**: Achieved over 30,000 deliveries in July, marking a new monthly delivery record [2] - **Horizon Smart Mobility**: Delivered 47,752 units in July, an 8.3% increase year-on-year, but a 9.5% decrease month-on-month [3] - **Xpeng Motors**: Delivered 36,717 units in July, with year-on-year and month-on-month growth of 229.4% and 6.1%, respectively, setting a new monthly delivery record [3] - **Li Auto**: Delivered 30,731 units in July, with year-on-year and month-on-month declines of 39.7% and 15.3% [3] - **NIO**: Delivered 21,017 units in July, with a year-on-year increase of 2.5% but a month-on-month decrease of 15.7% [4] - **Leap Motor**: Achieved 50,129 deliveries in July, marking a year-on-year increase of 127% and a month-on-month increase of 4% [4] - **Avita**: Delivered 10,062 units in July, with a year-on-year increase of 177.6% but a slight month-on-month decrease of 0.9% [5] Market Outlook - The market is expected to improve in August as several new models are set to launch, including Li Auto's i6 and new versions of Xpeng's P7 and Horizon's R7 and S7 [6] - The industry remains optimistic about BYD's smart driving and export capabilities, as well as Xpeng's new model launches contributing to sales and profit margin improvements [6]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies within it [27]. Core Insights - The NEV sector in China is experiencing intense competition, with performance among major manufacturers becoming increasingly divergent. The focus is expected to shift from price wars to quality and service upgrades as regulatory scrutiny tightens [8][16]. - BYD's June sales reached 383,000 units, a 12% year-on-year increase, while Geely sold 236,000 units, up 42% year-on-year. Both companies are adjusting their annual targets upwards due to strong first-half performance [9][10]. - Leapmotor achieved record sales of 48,000 units in June, marking a 139% year-on-year increase, while Li Auto and Xiaomi saw month-on-month declines in sales [11][14]. - NIO's wholesale sales were 25,000 units in June, reflecting an 18% year-on-year increase, but the company faces challenges from competitors in the same price segment [15][16]. Summary by Sections Sales Performance - BYD's first-half sales totaled 2.146 million units, achieving 39% of its annual target, while Geely's first-half sales reached 1.409 million units, with 47% of its revised target already met [9][10]. - Leapmotor's cumulative deliveries for the first half were 222,000 units, and it is expected to maintain strong sales momentum with new product launches [11]. - Li Auto's June deliveries were 36,000 units, down 24% year-on-year, while XPeng delivered 35,000 units, marking a 224% year-on-year increase [13][14]. Market Dynamics - The report highlights a shift in competition dynamics, with companies focusing on service upgrades and technological advancements rather than aggressive pricing strategies due to regulatory pressures [8][16]. - The performance of various brands indicates a competitive landscape where established players like BYD and Geely are facing challenges from emerging brands like Leapmotor and NIO [15][16]. Future Outlook - The second half of the year is expected to see continued volatility in sales as new models are launched and companies adapt to stricter regulations. Brands that can offer better value and brand equity are likely to outperform [16].