Chinese electric vehicle (EV) sales surged in September, underscoring a booming market that has held steady despite the country's recent economic woes.

Prominent Chinese EV makers such as XPeng (XPEV), Nio (NIO), and Li Auto (LI) reported surging EV sales last month. XPeng said it had delivered 15,310 Smart EVs last month, which was up 12% from August and 81% year-over-year. Nio delivered 15,641 EVs, up almost 44% from a year ago. Li Auto's sales, at just over 36,000, more than tripled from last year, while deliveries for the third quarter nearly quadrupled.

While Tesla (TSLA), a popular brand in the Chinese EV market, reported a 澳洲幸运5官方开奖结果体彩网:drop in deliveries for t🦂hꦉe third quarter as factory shutdowns—including one in China—impacted production.

Plug-in electric vehicles accounted for almost 40% of Chinese auto sales last month, while fully electric ones accounted for just over a quarter. In a sign of the market's continued strength, China accounted for a stunning 60% of global plug-in EV registrations last month.

The results underscore a booming Chinese EV market, which has thrived despite the country's 澳洲幸运5官方开奖结果体彩网:growing economic pains. Generous state subsidies and buyer incentives, which at one point doled out up to 60,000 yuan ($8,700) to anyone buying an EV, have propelled the industry's growth.

More than a fifth of car sales in China are fully electric, putting the country among the top five globally with regard to EV penetration. Only in four countries—Norway, Iceland, Sweden, and the Netherlands—do EVs account for a greater share of all vehicles sold. By comparison, the U.S. lags well behind at just a 6% share.

China also dominates the supply chain for lithium-ion batteries and benefits from its vast manufacturing capacity for EV components. According to BloombergNEF's 2022 supply chain ranking, China holds three-quarters of battery cell manufacturing capacity globally and accounts for 90% of battery anode and electrolyte production.

澳洲幸运5官方开奖结果体彩网:Am💖erican depositary receipts (ADRs) of XPeng and Li Auto have surged 80% and 70%, respectively, so far this year, while those o♔f Nio are down more than 6%.

Regulatory Scrutiny from Abroad

However, challenges have emerged to China's EV dominance. Chinese EV makers are facing growing regulatory scrutiny abroad, particularly in Europe and the U.S., as lawmakers there seek to protect domestic industry. European Union (EU) regulators last month 澳洲幸运5官方开奖结果体彩网:launched a probe into state subsidies for Chinese EV makers, in an effort to protect domestic carmakers like Volkswagen, Mercedes-Benz, Renault, and Stellantis (STLA)-owned brands like Opel, Alfa Romeo, and Fiat.