China’s prime electric-vehicle makers posted better-than-expected July gross sales as the federal government makes an attempt to spice up auto demand to assist revive a flagging financial restoration.

Method out entrance was BYD, China’s top-selling automaker, which delivered 262,161 new-energy automobiles final month, up 61 % from a 12 months earlier.

Xpeng, which final week signed a deal to supply EVs with Volkswagen Group, reported July gross sales of 11,008 models, up 28 % from the month earlier than.

Li Auto shipped 34,134 automobiles final month, whereas Nio’s deliveries jumped to twenty,462.

Gross sales by Li, Nio and Xpeng beat expectations by 1,000 to 2,000 models, CMB Worldwide analysts together with Ji Shi wrote in a observe.

Nio’s gross sales nearly doubled from the earlier month. Quantity is on the rise after an Abu Dhabi funding entity agreed in June to take a 7 % stake within the Shanghai-based producer for about $740 million.

The uptick in gross sales suggests a flip in fortunes for Nio, which posted a bigger-than-expected lack of 4.74 billion yuan ($660 million) within the quarter by March after which noticed gross sales slip to below 13,000 EVs for April and Could mixed.

China has made pledges lately to stoke auto demand as a part of a broader push to spice up the economic system, together with a 10-step plan to extend automobile purchases, notably NEVs. In June, the Ministry of Commerce launched a six-month marketing campaign to carry automobile purchases and drive EV adoption in rural areas.

The July gross sales bump comes after a lot of China’s prime automakers fell behind their annual gross sales targets within the first half, suggesting a value warfare that engulfed the world’s greatest automobile market may proceed.

Of 10 main producers studied by Bloomberg, none had reached 50 % of their annual gross sales objectives on the mid-point of the 12 months.