Market Analysis | Auto stocks experience significant pullback, LI AUTO-W drops over 11%, XPENG-W drops over 10%

Previously, the automotive stocks that had been continuously rising experienced a significant pullback today. As of the time of publication, LI AUTO-W fell by 11.06% to HKD 107; XPENG-W fell by 10.21% to HKD 46.6; GWMOTOR dropped by 6.49% to HKD 15.84. On the news front, on October 4th local time, EU member states officially voted to impose an additional tax of up to 35% on electric vehicles manufactured in China on top of the existing 10% tax, set to take effect at the end of October. The European Commission's statement indicated that the proposal to impose tariffs on imported pure electric vehicles from China received the necessary support from EU member states during the vote. CITIC Securities pointed out that due to the impact of anti-subsidy investigations recently, China's exports of new energy vehicles to the EU declined in the first half of the year. Looking ahead, drawing parallels with the overseas development experiences of European, American, Japanese, and Korean automakers, Chinese automakers are expected to gradually shift from "vehicle exports" to "overseas manufacturing," with the intelligentization of the Chinese automotive industry chain represented by new energy vehicles and automotive components poised to become a new fulcrum for expanding overseas market space