Market Insight | NIO-SW rose more than 10%, leading the automotive stocks. With continuous efforts in automotive policies, the penetration rate of new energy vehicles in May is expected to reach a new high

In the morning session, automotive stocks rose. As of the time of publication, NIO-SW rose by 10.47% to HKD 42.2; XPENG-W rose by 6.13% to HKD 33.75; LI AUTO-W rose by 4.11% to HKD 81.05; GWMOTOR rose by 3.2% to HKD 14.18. On the news front, on May 29th, the State Council issued the "Energy Saving and Carbon Reduction Action Plan for 2024-2025", mentioning the acceleration of phasing out old motor vehicles and gradually lifting the restrictions on the purchase of new energy vehicles in various regions. Previously, the Ministry of Commerce, the Ministry of Finance jointly issued the policy of trading in old cars for new ones, and the Ministry of Industry and Information Technology and other five departments jointly organized activities to promote new energy vehicles in rural areas, which have been successively implemented. Southwest Securities pointed out that with the implementation of the national "trading in old cars for new ones" policy and the introduction and follow-up of corresponding policy measures in various regions, it is beneficial for the automotive market to gradually strengthen. In addition, the China Passenger Car Association estimates that the retail sales volume in May will be around 1.65 million units, a year-on-year decrease of 5.3% but an increase of 7.8% month-on-month. The retail sales of new energy vehicles are expected to be 770,000 units, a year-on-year increase of 32.8% and a month-on-month increase of 13.7%, with a penetration rate expected to reach 46.6%, reaching a new high