Here are Oct China EV sales data:
1. total EV sales was 117K units, 84% increase from Oct last year.
2. the largest EV producer BYD sold 27K EVs whom publish its sales on a monthly basis. BYD has been selling more EVs than fuel vehicles for the last two month. It is going to sell 220-230K EVs in 2018.
3. Chery sold more than 10K EVs, a 200+% increase from last year.
4. Can not get the exact figures for others major EV makers like SAIC or BAIC yet.
2019 is going to be the turning point for EV (my humble prediction), hence for Lithium industry. The lithium over supply was predicted (for whatever reason by the investment banks) but it will be proved to be very wrong for the following reasons:
1. China EV growth rate much higher than analysts calculated
2. Tesla steadily ramp up production and drove the US EV growth rate to over 100% in the last three months, again beating analyst expectation. It looked certain that US EV market will repeat what the Chinese EV did in 2017 and 2018, dramatic sales increase.
3. Tesla is taking over luxury car sector and market share by storm, and hurting every luxury car makers in a way so that they have react faster before Tesla finishes building its Shanghai factory. Otherwise, I will not be surprised to see two or three luxury car makers go bust.
4. China EV market will have more EV players in 2019 and the fight for market share will drive growth again.
5. Global battery charging network is getting more and more mature.
AJM Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
