Morgan Stanley believes that the policy's Bullish effects will weaken in the first quarter of this year, and expects the stimulating effect to only become apparent from the second quarter.
According to the Zhito Finance APP, Morgan Stanley released a research report stating that, similar to last year, mainstream auto brands are likely to benefit more from this policy, and at the same time, traditional brands with more sales channels in lower-tier cities will also benefit, with a bullish outlook on brands such as Geely Automobile (00175), Great Wall Motor (02333), Chongqing Changan Automobile (000625.SZ), Xpeng Motors-W (09868), and BYD Company (01211).
The report stated that the new subsidy policy for replacing and upgrading cars has been introduced in mainland China, but since consumer demand for car purchases was satisfied ahead of schedule at the end of last year, it is believed that the policy's bullish effect for the first quarter of this year will therefore weaken. It is expected that the boosting effect will only become apparent starting from the second quarter, coupled with more models being launched around the April Shanghai Auto Show, auto sales may significantly increase starting from the second quarter.
