Understanding the Market | Automotive Industry Chain Leads the Way in Growth, Association Calls for Relief for Car Dealers, Institutions Expect Sales Performance in September and October to Exceed Expectations
The automotive industry chain has shown significant growth, with Zhongsheng Holdings, MEIDONG AUTO, Nio, Li Auto, and XPeng all experiencing increases. The China Automobile Dealers Association has called on the government to pay attention to the financial difficulties of automotive dealers and to take financial relief measures. Guojin Securities predicts that, stimulated by policies, sales in September will exceed expectations, especially for new energy vehicles. The Fed's interest rate cut will also benefit the automotive consumer market
According to the Vantage Financial News app, the automotive industry chain led the gains. As of the time of publication, Zhongsheng Holdings (00881) rose by 6.42% to HKD 9.62; Meidong Auto (01268) rose by 6.08% to HKD 1.92; Nio-SW (09866) rose by 6.51% to HKD 42.55; Li Auto-W (02015) rose by 4.67% to HKD 88.6; XPENG-W (09868) rose by 2.28% to HKD 38.05.
On the news front, according to relevant data from the China Automobile Dealers Association, in August, the overall discount rate of the new car market was 17.4%. From January to August this year, the "price war" has led to a cumulative retail loss of 138 billion yuan in the overall new car market, which has had a significant impact on the healthy development of the industry. The association calls for government departments to pay close attention to the financial difficulties and shutdown risks faced by the current automotive distribution sector, take decisive phased financial relief policy measures, and effectively prevent the systemic risks in the automotive distribution sector.
Guojin Securities pointed out that in September, various provinces have successively issued replacement policies in response to the national scrappage and renewal policy, encouraging consumers to trade in old cars for new ones, effectively boosting new car sales. With the addition of policy subsidies, the traditional "Golden September" sales performance in the automobile market has been impressive, and the incremental potential of new energy products is higher than historical expectations. In addition, on September 19, the Federal Reserve cut interest rates by 50 basis points, officially starting a global interest rate cut cycle, which is also a positive factor for car consumption. It is expected that the sales performance in the strong season of Golden September and Silver October this year will exceed expectations