On October 18th, the news $Cars (LIST1040.HK)$ rose in the afternoon, as of the time of publication,$GAC GROUP (02238.HK)$ up 7.09%, at 2.72 Hong Kong dollars;$BYD COMPANY (01211.HK)$ up 6.95%, at 289.4 Hong Kong dollars; $GEELY AUTO (00175.HK)$ Rise by 6.34%, to HK$12.74; $LI AUTO-W (02015.HK)$ Rise by 6.11%, to HK$99.9; $LEAPMOTOR (09863.HK)$ Rise by 5.58%, to HK$30.25; $GWMOTOR (02333.HK)$ Rise by 5.02%, to HK$13.8; $XPENG-W (09868.HK)$ Rising by 3.58%, closing at 43.35 Hong Kong dollars.

On the news front, according to data from the China Passenger Car Association, from October 1 to 13, the passenger vehicle market retail sales were 0.823 million units, a year-on-year increase of 20% and a month-on-month increase of 17%. From October 1 to 13, the passenger vehicle new energy market retail sales were 0.408 million units, a year-on-year increase of 64% and a month-on-month increase of 8%. According to previous data from the China Passenger Car Association, in September, the national narrow definition passenger vehicle retail sales were 2.109 million units, a year-on-year increase of 4.5% and a month-on-month increase of 10.6%; cumulatively this year, there were 15.574 million units sold, a year-on-year increase of 2.2%. In September, the new energy passenger vehicle market retail sales were 1.123 million units, a year-on-year increase of 50.9% and a month-on-month increase of 9.6%. From January to September 2024, 7.132 million units were sold, a year-on-year increase of 37.4%.

Sinolink believes that market sales volume turning positive year-on-year has outperformed expectations. The main source of the over-performance is the dual stimulation of policies at the government and corporate levels. Various provinces successively issued replacement policies in September, encouraging consumers to trade in old cars for new ones, effectively boosting new car sales. Looking ahead to October, with ongoing policy subsidies and manufacturer promotions, combined with the launch of new cars by companies like NIO Inc, Zeekr, and Huawei Smart Selection by the end of September, models such as XPeng M03 and Li Auto L6 will continue to see high sales volumes. Against the backdrop of the central monetary policy, it is expected that the performance of the automotive sector in October will remain strong. For the whole year, it is expected that total retail sales volume for the year will see a slight increase.