Auto stocks rose across the board in early trading, as of press time,$GWMOTOR (02333.HK)$up 6.40% to HKD 12.3;$XPENG-W (09868.HK)$up 4.41% to HKD 29.6;$GEELY AUTO (00175.HK)$up 3.94% to HKD 9.23;$BYD COMPANY (01211.HK)$up 1.88% to HKD 238.

On the news front, according to the data from the China Association of Automobile Manufacturers on June 17, the production and sales of automobiles in May were 2.372 million and 2.417 million respectively, up 1.7% and 1.5% year-on-year. Specifically, the domestic sales of automobiles in May were 1.936 million, up 4.3% sequentially but down 2.9% year-on-year. As for exports, the export of automobiles in May was 481,000, down 4.4% sequentially but up 23.9% year-on-year. According to the data from the China Passenger Car Association official account, the wholesale penetration rate of new energy passenger vehicles in May was 44.2%.

According to the research report of Citic Sec, the wholesale sales volume of the auto industry reached 2.075 million vehicles in May 2024, with a MoM increase of 2.5% and YoY increase of 1.5%. In terms of structure, the export sales volume in May fluctuated due to transportation capacity issues; the penetration rate of new energy continued to rise MoM. With the high-quality supply gradually increasing throughout the year, we are bullish on the continued improvement of the penetration rate of new energy in Beijing.