Shares of China’s leading electric vehicle makers rallied in Hong Kong on Thursday after stronger-than-expected June delivery figures reinforced investor confidence that demand remains resilient despite intensifying competition. BYD gained about 9%, while Xiaomi rose roughly 5%, as the latest sales data shifted attention back to operational performance.

Xiaomi Extends Its Delivery Momentum

Xiaomi recorded its third consecutive month of more than 30,000 vehicle deliveries in June, highlighting the steady expansion of its EV business. Total deliveries for the first six months of the year exceeded 180,000 vehicles, equivalent to around 33% of the company’s 2026 target of 550,000 units, according to Citi.

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The bank believes the stock could receive another boost in August with the expected launch of Xiaomi’s YU9 luxury sport utility vehicle. Citi also pointed to another potential catalyst outside the automotive business, saying signs that memory prices are approaching a peak, supported by higher capital expenditure from major Chinese memory manufacturers, could further improve investor sentiment.

BYD Builds On Its Scale Advantage

BYD also delivered another strong month, reporting June sales of 403,472 vehicles, up 5.46% from 382,585 a year earlier. The result reinforces the company’s position as the world’s largest EV manufacturer by volume and suggests demand has remained resilient even as competition across China’s electric vehicle market continues to intensify.

Deutsche Bank noted that BYD’s second-quarter sales rose 58% from the previous quarter to 1.1 million vehicles. On the back of that performance, the bank expects second-quarter net profit to increase 145% quarter on quarter to RMB 10 billion, supported by higher sales volumes and improved operating leverage.

Investors Reward Execution

The latest share-price gains highlight what continues to drive valuations across China’s EV sector. Rather than broad optimism about the industry, investors are placing greater emphasis on measurable execution, including delivery growth, new product launches and profitability.

Xiaomi remains focused on scaling its automotive business, while BYD continues to benefit from its manufacturing scale and operational efficiency. June’s delivery figures reinforced confidence that both companies are executing against their growth plans, giving investors fresh reasons to remain optimistic despite a more competitive market.