Gelonghui, September 13 | China Merchants Securities International released a report saying that according to data from the Passenger Federation, the mainland sold 2.15 million passenger cars in August, down 3.9% year-on-year and 9.6% quarterly. Looking ahead to September entering the peak season of the industry, supply and demand are expected to continue to strengthen. The bank said that increased subsidies help drive the peak season effect. Economical new energy vehicles are highly flexible, and it is expected that BYD and Geely will benefit the most. Furthermore, the A-class car market has a capacity of nearly 8 million vehicles, and the penetration rate of new energy sources is low. Following BYD Yuan Plus, sales of new vehicles such as Geely Galaxy E5 and Xiaopeng's Mona 03 have exploded. A-class pure electric vehicles already have the advantages of high cost performance and high intelligence, and have begun to seize fuel vehicle market share on a large scale. According to the bank, policy increases and peak season effects improved the economy in the fourth quarter. It is optimistic about companies BYD and Geely where policy dividends resonate with the new car cycle. In addition, the explosion of new Xiaopeng Mona cars improved product cycle certainty, moved the valuation base period forward, and raised the Group's target price from HK$36 to HK$50.