Nio (NYSE:NIO) stock is in the red after European Union (EU) battery electric vehicle (BEV) insurance registrations for the month of January were released. Registrations of BEVs tallied in at 92,741, down by 42.3% month-over-month (MOM) but up by 29% year-over-year (YOY). Meanwhile, total EU new car sales were up by 12.1% YOY.
Germany and France were behind the MOM BEV registration decline, as they hold the two largest BEV markets in the EU. Germany’s BEV sales fell by 59% MOM while France’s sales fell by 46% MOM.
“The figures reflect a global slowdown in electric vehicle sales, which dropped 26% in January from December but rose 69% from a year earlier, according to data published last week, as subsidy cuts or tighter rules in Germany and France weighed, among other factors,” said Reuters.
NIO Stock: EU BEV Car Registrations Decline 42.3% MOM
Furthermore, EVs in the EU made up 47.5% of all new passenger car registrations in January compared to 42.7% a year ago and 53.3% in December. On top of that, the EU will enact new CO2 limits next year, which should help the sales of BEVs as automakers prepare for the change.
In January, global EV sales rose by a significant 69% YOY but were down by 26% when compared to December. In the U.S. and Canada, sales rose by 41% YOY.
In China, Nio’s insurance registrations totaled 1,500 from Feb. 5 to Feb. 18. As of Feb. 18, total registrations for the month tallied in at 2,800. That compares to 3,100 registrations between Jan. 29 to Feb. 4. However, China’s citizens have been celebrating Chinese New Year. As a result, it was expected that Chinese EV registrations would fall in late January and February.
During January, Nio delivered 10,055 vehicles, up by 18.2% YOY. However, that figure fell significantly from December’s deliveries of 18,012 vehicles. In 2023, the company delivered a total of 160,038 vehicles, up by 30.7% YOY.
It’s evident that there is a growth slowdown in EV sales. While sales are still growing on a yearly basis, the reduction of subsidies and overcapacity are likely contributing to a slower level of growth.
On the date of publication, Eddie Pan did not hold (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.
