Auto stocks in Hong Kong saw an expansion of gains during late trading. At the time of writing, GEELY AUTO (00175) rose 4.9% to HK$20.98; BYD COMPANY (01211) increased 4.1% to HK$106.6; LI AUTO-W (02015) advanced 4.01% to HK$67.4; and XPENG-W (09868) climbed 3.21% to HK$73.9.
The recent sustained high volatility in international crude oil prices has significantly amplified the total cost-of-ownership advantage of new energy vehicles in overseas markets. Guolian Minsheng Securities stated in a research report that rising oil prices strengthen the competitive edge of new energy vehicles. With leading automakers reporting better-than-expected exports, the growth rate of new energy vehicle exports is expected to continue rising in March, supporting a positive outlook for the overall vehicle export trend.
Domestically, improvements have been observed on both the policy and supply fronts since February. Local governments have successively launched subsidy programs for vehicle trade-ins, with more popular cities introducing additional rounds of subsidies this week. Furthermore, various automakers are expected to roll out new models ahead of the Beijing Auto Show in late April. It is anticipated that automotive demand will stabilize and recover in March, presenting investment opportunities driven by improving domestic demand and growing exports.
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