Bocom Intl is bullish on BYD Company (01211), Li Auto Inc-W (02015), and NIO Inc-SW (9866).
Intelligence Finance learned that Bocom Intl issued a research report stating that recent policies from the Ministry of Finance and the National Development and Reform Commission, such as strengthening the scrappage subsidies for passenger vehicles and offering a subsidy of RMB 5,000 more for pure electric and hybrid vehicles compared to conventional fuel vehicles, are expected to promote the development of new energy vehicles. At the same time, the launch of new cars in August may help short-range electric vehicle products to return to the list of vehicles exempt from purchase tax through technical adjustments. The bank expressed bullish sentiment toward BYD Company (01211), Li Auto Inc-W (02015), and NIO Inc-SW (09866).
The bank stated that due to the advance depletion of demand caused by promotional activities, retail sales of passenger vehicles in China slightly declined in July, and the automobile market has entered a period of rest. The market share of domestic brands continued to increase, with its national retail share increasing by 8.5 percentage points to 61.8% compared to the same period last year. In addition, the retail penetration rate of new energy vehicles in July increased by 2.7 percentage points month-on-month to a new high of 51.1%. In terms of exports, the overall export volume in July remained unchanged, but the proportion of new energy vehicles in passenger car exports increased by 3.5 percentage points to 24.5%.