Understanding the Market | XPENG-W opens high by over 7%, leading the rise in automotive stocks. In June, the year-on-year retail sales of new energy vehicles increased by 30%. The tipping point of automotive intelligence has arrived

According to the information from Zhitong Finance APP, automobile stocks opened higher across the board. As of the time of publication, XPENG-W (09868) rose by 7.81% to HKD 32.45; Nio-SW (09866) rose by 6.15% to HKD 38; Li Auto-W (02015) rose by 4.05% to HKD 80.9; Geely Auto (00175) rose by 1.86% to HKD 8.78.

On the news front, according to preliminary statistics from the China Passenger Car Association, from June 1st to 30th, retail sales of passenger vehicles reached 1.755 million units, down 8% year-on-year but up 2% month-on-month. Cumulative retail sales this year reached 9.828 million units, up 3% year-on-year; retail sales of new energy passenger vehicles reached 864,000 units, up 30% year-on-year and 6% month-on-month. Cumulative retail sales this year reached 4.119 million units, up 33% year-on-year.

Minsheng Securities pointed out that the era of intelligent automobiles has arrived, bringing opportunities for independent technological innovation. The ability for automobile intelligence will become an important factor in the competition among car manufacturers. On July 3rd, XPeng's new model, XPeng MONA M03, made its global debut, targeting the market segment of 100,000 to 150,000 RMB, and is expected to be officially launched in August. Zhongtai Securities believes that with reasonable pricing, autonomous driving is expected to demonstrate differentiation advantages in this price range, and is optimistic about the future sales performance of the MONA series models