BYD, XPeng and Co are entering – a new record and a political tail

Shares of Chinese EV makers performed strongly throughout Tuesday. The reason for this was the latest sales figures from the Middle Kingdom. But not only this, but also the new government action ensured that Xpeng’s stock gained almost ten percent.

Auto sales in China rose in March, recovering from weak results last month. Retail sales of passenger cars in China rose 6 percent year-on-year to 1.68 million units on Tuesday, according to the China Passenger Car Association. Compared to the previous month, they increased by 53 percent, although this was also due to a smaller base due to the Chinese New Year.

BYD defended its title as the largest EV seller in March with 301,631 units sold. Tesla took second place.

Nationwide, retail sales of new vehicles with alternative electric powertrains, which include EVs and plug-in hybrids, rose 29.5 percent to 709,000 units. China’s auto exports even hit a record high in March, rising 39 percent to 406,000 units.

That number is likely to continue to increase in the coming months. China’s central bank recently announced that it will make it easier for individuals to take out loans to buy a car. Previously, there was an upper limit of 85 percent for the price of electric and hybrid vehicles and 80 percent for gasoline and diesel vehicles. Now lenders should be able to set an upper limit themselves, which at least theoretically makes 100 percent financing possible.