The world has continuously demanded technology. Hence, electric vehicle (EV) companies have experienced increased demand in the past few years. The increasing sales of electric vehicles are an evident manifestation of such a demand.
Over 6 million new battery electric vehicles (BEV) and plug-in hybrids (PHEV) were sold in the first half of 2023 in China, increasing by approximately 40%. Across the world, sales in the U.S. and Canada increased by about 50% during the past nine months.
With the increasing demand for EVs, many new companies, including battery-producing manufacturers and charging station developers, entered the competition. Such an increased number of competitors is more of a challenge than expected in terms of sales.
Investors prefer companies that have strong sales growth. So, let’s dive into the three EV stocks with strong sales growth in the market.
BYD (BYDDF)
One of the leading companies in the EV sector, BYD (OTCMKTS:BYDDF) is famous for its cars and battery units. In line with industry changes, BYD has remained one step ahead of its competitors by introducing innovations such as blade batteries while focusing on in-house production.
In terms of sales, BYD is in the top spot. During the third quarter of this year, the company sold 431,000 BEVs, reaching revenue of 162.2 billion yuan, a 38.5% increase. For October only, its sales surged by 38% to 301,095, underscoring the size of its achievement.
To further increase its sales, BYD is developing brand-new models and marking down its vehicle prices to attract more customers. This will help BYD reach its goal of selling 4 million units in 2023.
Furthermore, BYD is expanding its boundaries, aiming for the European and Japanese markets. With all of this in mind, anyone considering investing in the electric future has good reason to add BYD to their portfolio.
Li Auto (LI)
One of the prominent leaders in the Chinese EV industry is Li Auto (NASDAQ:LI). The company showed remarkable growth in the third quarter of 2023 by selling 105,108 units, representing a noteworthy growth rate of 296.3% year over year. Building on this, the company reported Q3 revenue of 34.68 billion yuan.
Moreover, the company sold a record number of 40,422 vehicles in October, increasing more than 300%. Li Auto is the first Chinese automobile company to reach this sales benchmark.
Chairman Xiang Li said, “Li Auto has led the sales chart of SUVs priced above RMB300,000 for six straight months, becoming the best-selling premium brand among SUVs in China.” This indicates that Li Auto has earned a prominent position in China’s EV industry.
Nio (NIO)
What differentiates Nio (NYSE:NIO) from other companies is that Nio handles everything itself – battery charging, autonomous driving, etc. Nio also released its first-ever phone to use with its cars.
In Q3, the company’s sales reached 55,432 units, representing the highest figure achieved within a quarter. In addition, Nio has already made deliveries of 16,074 units in October.
Moreover, Nio has made 126,000 deliveries so far in 2023, an improvement of around 33% over 2022. A critical factor in the sales and delivery increase is that Nio has been carefully evaluating its sales team. Nio has also restructured various teams to support higher sales.
With all these impressive sales figures, NIO stock remains a valuable addition to any investor’s portfolio.
On the date of publication, Nauman Khan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.