Market Insight | Auto stocks rise in the afternoon, BYD Company Limited up more than 5%, October performance of car companies expected to remain strong
Auto stocks rose in the afternoon, with BYD Company Limited up 5.17%, GAC Group up 5.12%, and Li Auto up 4.35%. From October 1st to 13th, the retail sales of passenger vehicles reached 823,000 units, a year-on-year increase of 20%. The retail sales of new energy vehicles reached 408,000 units, a year-on-year increase of 64%. Guojin Securities believes that the market sales exceeded expectations, mainly driven by policies. It is expected that the performance of auto companies in October will continue to be strong, with a slight increase in total retail sales for the whole year
According to the information from Zhitong Finance and Economics APP, auto stocks rose in the afternoon. As of the time of publication, BYD Company Limited (01211) rose by 5.17% to HKD 284.6, GAC Group (02238) rose by 5.12% to HKD 2.67, LI AUTO-W (02015) rose by 4.35% to HKD 98.25, and Leapmotor (09863) rose by 2.27% to HKD 29.3.
On the news front, data from the China Passenger Car Association shows that from October 1st to 13th, retail sales of passenger vehicles reached 823,000 units, a year-on-year increase of 20% and a month-on-month increase of 17%. During the same period, retail sales of new energy passenger vehicles reached 408,000 units, a year-on-year increase of 64% and a month-on-month increase of 8%. According to previous data from the China Passenger Car Association, in September, the narrow definition of retail sales of passenger vehicles nationwide reached 2.109 million units, a year-on-year increase of 4.5% and a month-on-month increase of 10.6%; cumulatively, 15.574 million units have been sold since the beginning of the year, a year-on-year increase of 2.2%. In September, retail sales of new energy passenger vehicles reached 1.123 million units, a year-on-year increase of 50.9% and a month-on-month increase of 9.6%. From January to September 2024, retail sales reached 7.132 million units, a year-on-year increase of 37.4%.
Guojin Securities believes that the year-on-year positive growth in market sales volume has exceeded expectations. The main source of the overperformance is the dual drive of policies at the government and corporate levels. In September, various provinces successively issued replacement policies to encourage consumers to trade in old vehicles for new ones, effectively boosting new car sales. Looking ahead to October, policy subsidies and manufacturer promotions will continue, coupled with the launch of new cars by companies like Nio, ZEEKR, and Huawei Smart Selection at the end of September, as well as the continuous volume increase of models like XPeng M03 and LI AUTO L6. Against the backdrop of the central monetary policy, it is expected that the performance of car companies in October will remain strong. For the whole year, it is expected that the total retail volume for the year will see a slight increase