According to the Wise Finance APP, automobile stocks collectively rose, as of the deadline,$NIO-SW (09866.HK)$up by 10.35%, to 45.85 Hong Kong dollars;$XPENG-W (09868.HK)$up by 4.8%, to 46.95 Hong Kong dollars;$LEAPMOTOR (09863.HK)$up by 1.16%, to 30.55 Hong Kong dollars.

On the news front, according to the China Passenger Car Association data, from October 1st to 20th, the passenger vehicle market sold 1.264 million units, a 16% year-on-year increase, a 12% increase from the same period last month. Cumulatively, 16.838 million units have been sold this year, a 3% year-on-year increase. In terms of new energy, from October 1st to 20th, the passenger vehicle new energy market sold 0.609 million units, a 45% year-on-year increase, a 1% increase from the same period last month. Cumulatively, 7.741 million units have been sold so far this year, a 38% year-on-year increase. The China Passenger Car Association predicts that in October, the narrow passenger vehicle retail sales will reach approximately 2.2 million units, an 8.2% year-on-year increase, and a 4.3% increase from the previous month; new energy vehicle retail sales are expected to reach 1.15 million units, a 2.4% month-on-month increase, with a penetration rate reaching 52.3%.

Sinolink Securities pointed out that before the end of this round of policy for replacing old vehicles, combined with the peak season for year-end auto consumption, the growth rate of auto sales is expected to further rise, bringing about excess returns for the auto sector. At the same time, approaching the end of the year, the market may anticipate the 2025 policy ahead of time. It is expected that if the policy for replacing old vehicles continues or if other new policies are introduced, it will provide better support for auto consumption in 2025, and the excess return market may continue; but if there are no relevant stimulus policies, auto sales at the beginning of 2025 may come under pressure.

Editor/ping