Jingu financial news | citic sec stated that the peak season demand is strong, overweighting the autos sector. Driven by policies and peak season demand, the bank expects passenger vehicle sales volume in mainland China in September to grow by more than 5% year-on-year. The bank noticed that major electric vehicle manufacturers such as NIO (09863), li auto inc (02015), byd company limited (01211), and Xiaopeng (09868; driven by MONA) have good momentum in terms of orders and deliveries. Due to strong sales and low discounts, the bank expects leading OEMs to have a good profit performance in the third quarter of 2024.

In addition, the bank believes that high-end intelligent driving assistance (NOA) led by tesla (TSLAUS) and Chinese technology giants is beginning to mature. Overall, the bank believes that the fundamentals of the autos industry are good, with good wealth effects in late September, and recommends overweighting the autos sector.