NEV startups post record August sales

China's new energy vehicle startups notched record sales in August, underscoring how new models, lower prices and growing acceptance of smart car features are reshaping the world's largest auto market.

Leapmotor delivered 57,066 vehicles last month, up 88 percent from a year earlier and the highest monthly total in its history. It was the sixth straight month the company led sales among China's NEV startups.

The company crossed 900,000 cumulative deliveries in August and reported its first half-year net profit, becoming the second Chinese NEV startup to achieve profitability on that basis, after Li Auto.

XPeng delivered 37,709 vehicles in August, a 169 percent jump from a year earlier and a 3 percent rise from July, marking a new monthly record, the Chinese NEV maker said.

The Mona M03 compact sedan remained a major growth driver, with more than 15,000 units delivered last month and over 160,000 sold since launch a year ago.

Nio saw its monthly deliveries over 30,000 units for the first time, hitting 31,305 in August, up 55.2 percent year-on-year.

Voyah, the NEV brand backed by Dongfeng Motor, also reported record shipments of 13,505 units, up 119 percent year-on-year.

The synchronized sales momentum reflects a confluence of factors. "This isn't a coincidence," said one analyst tracking China's EV market.

"We are entering a new product cycle where multiple startups are hitting the sweet spot of design, technology and pricing at the same time."

New model launches were the most immediate catalyst. Many NEV startups introduced key products in the second quarter, with deliveries ramping up in July.

In a market where consumers expect constant innovation, timely rollouts are essential to sustain growth, analysts said.

In the case of Nio, its record-making sales benefited from its sub-brand Onvo's L90, a large-sized electric SUV launched in late July.

Its first full-month deliveries hit 10,575 units, almost one-third of Nio's total deliveries in August.

XPeng said its new P7 sedan, launched late last month, secured more than 10,000 orders within seven minutes — the fastest debut in XPeng's history.

Foot traffic and test drives also hit record highs in the first weekend after launch, said the carmaker.

Voyah said its new Courage SUV garnered 3,000 orders on launch day, while its 2026 Dream MPV received more than 10,000 orders when pre-sales opened at the Chengdu motor show in late August.

Discount schemes such as trade-in subsidies and lower entry prices helped unlock demand in second- and third-tier cities, expanding beyond the premium early-adopter segment.

Voyah drew applause and exclamations of excitement when it launched its Courage SUV, equipped with Huawei smart cabin and driver assistance features, at a starting price of 202,900 yuan ($28,000).

The lower starting price was also a major cause of the popularity of Nio's flagship ES8 SUV as well as its Onvo L90. A Nio sales executive said he has never seen the company's sales system slow down due to an influx of orders.

"We've made adjustments in product definition, learning from past lessons, and that's why models like the L90 and the new ES8 are being well received," said Nio founder and CEO William Li.

Looking ahead, Li said Nio will launch three large SUVs next year — the Nio ES9, ES7 and Onvo L80 — to further strengthen its lineup.

Another driver is the growing consumer appetite for advanced driver-assistance systems and intelligent cockpits.

Features such as navigation-on-autopilot, automated parking and AI-driven in-car assistants are no longer seen as gimmicks, but as must-have capabilities.

That shift has played to the strengths of NEV startups, which have been quicker than traditional carmakers, especially overseas brands, to deploy such functions.

Government incentives have also added fuel. National and local authorities have continued to promote EV adoption through purchase subsidies and replacement programs, dovetailing with rising seasonal demand during the summer travel period.

Perhaps more fundamentally, startups that were once perceived as risky bets are beginning to gain credibility.

Nio's Li said around 30-40 percent of its potential customers still walk away because they worry the startup may go bankrupt at any time.

Nio has been losing money but has vowed to break even in the fourth quarter of this year — a goal analysts say looks more likely given the sudden popularity of the ES8 and Onvo L90.

"Our new-generation products have strong cost competitiveness, supported by long-term in-house R&D and cost-control measures," Li said.

After several years of improving product quality and building service networks, companies such as Nio and XPeng have cultivated user communities that reinforce loyalty and word-of-mouth sales.

But whether August's performance proves sustainable remains to be seen, as more new models enter the fray, including those from traditional brands, and more creative sales campaigns are rolled out.

Volvo launched its XC70 late last month in Chengdu. "You cannot tell it apart from those Chinese brands if you sit in the car and cover the logo," said one attendee at the launch.

Voyah partnered with British iconic cartoon Peppa Pig to launch its Courage SUV, highlighting the model as a family vehicle, while another startup, Avatr, is working with popular Chinese animated film Nobody in an effort to convey the charm of local Chinese creativity.

Analysts said competition in China's NEV market is only intensifying, with BYD, Tesla and a host of legacy automakers trying every means to defend market share.

But the figures signal that some challengers are getting established in the world's largest and most competitive NEV market, they added.