According to an analysis, the global market capitalization of listed automobile manufacturers experienced a significant decline in June 2026. The US stock market, which holds the largest share, saw its total auto sector market cap fall to 14.4 trillion yuan, a 5% decrease from May, though it was still 2% higher than in June 2025. The Hong Kong stock market's auto sector capitalization reached 1.64 trillion yuan, dropping 18% month-on-month and 43% year-on-year. Meanwhile, the domestic A-share market's auto sector capitalization stood at 0.56 trillion yuan, down 19% from May and 34% from the previous year. The market value of listed automakers serves not only as a valuation of their current operations but also as a barometer for industry trends, technological shifts, and policy directions. Many manufacturers prioritize market cap management, making its monitoring a crucial area of industry research. The difficulty of listing on the A-share market for automakers contributes to its relatively weaker competitiveness compared to international exchanges.
Market Capitalization Overview for Automakers
The analysis focuses on the three primary markets for listed auto manufacturers: the US, Hong Kong, and China's A-share market. European markets are more fragmented and were not included in this study. For companies listed in multiple locations, such as A-shares and Hong Kong, the primary listing location is emphasized. Companies like BYD Company Limited (HKG: 1211), Geely Automobile Holdings Ltd. (HKG: 0175), and Great Wall Motor Company Limited (HKG: 2333) are categorized under the Hong Kong market, simplifying the A-share analysis to more traditional players. Historically, Hong Kong's auto sector market cap showed a relatively strong upward trend compared to the US market from Q1 to Q3 2025. However, since the beginning of 2026, both A-share and Hong Kong-listed auto manufacturers have faced significant downward pressure. The A-share market has seen little new listing activity, leading to relatively flat growth, while the US market has experienced larger gains, buoyed by the AI wave and the success story of Tesla Inc (NASDAQ: TSLA). Since October 2025, as sales growth has slowed, the performance of auto stocks in Hong Kong and mainland China has weakened.
Shifts in Market Capitalization Composition
When aggregating the market capitalization of Chinese automakers and auto parts companies from both A-shares and Hong Kong listings, the strength of the industrial chain is evident. In June, auto parts companies accounted for 47.5% of the total stock market value (up from 35.8% in 2025), showing a strong performance. In contrast, the share of automakers' market cap fell rapidly to 49.3% (down from 61.2% in the same period last year). This decline is significant even with the inclusion of Chery Automobile Co., Ltd..
Key Stock Movements in June
The global auto sector's market capitalization showed significant divergence in June 2026. Tesla Inc (NASDAQ: TSLA), with a market cap of 10.76 trillion yuan, stands apart. Its substantial year-on-year increase is attributed to progress in AI and Full Self-Driving (FSD) technology, though its valuation logic as a tech stock differs markedly from traditional automakers. Among US automakers, General Motors Company (NYSE: GM) showed notable stock performance as its electrification transition gains traction, while Toyota Motor Corporation (TYO: 7203) hit an 18-month low, reflecting pressure on Japanese automakers' transformation. Chinese automakers generally outperformed their international peers. VOYAH (a subsidiary of Dongfeng Motor Corporation) saw a massive increase in market cap, while NIO Inc. (NYSE: NIO), Foton Motor (SHA: 600166), and Sinotruk (Hong Kong) Limited (HKG: 3808) performed well, primarily driven by strong sales figures. The core driver of the current valuation landscape remains sales growth. Factors such as NIO's consecutive quarterly profits, strong subsidies for heavy trucks, and trade-in policies stimulating commercial vehicle demand have supported the market cap of related companies. The commercial vehicle sector overall remained stable, showing better anti-cyclical characteristics than passenger vehicles. The fact that industry leaders like Toyota are at 18-month lows suggests the market may have overpriced intensified competition, leaving room for potential valuation recovery. Overall, sales performance and transformation success are becoming the core valuation logic in this era of divergence.
Performance Across Automaker Categories
The market capitalization changes for international automakers in June were relatively large and severe overall. While Tesla's market cap increased 47% year-on-year, it still fell 4% month-on-month. Other international automakers saw their market caps generally at the lowest levels since 2025, indicating a sluggish market. Traditional international automakers like Toyota and General Motors saw a 7% year-on-year and 9% month-on-month decline. Private Chinese automakers, such as Great Wall Motor Company Limited (HKG: 2333), fell 29% year-on-year and 17% month-on-month. So-called "smartphone maker" automakers saw a drastic 64% year-on-year and 24% month-on-month drop. State-owned automakers declined 14% year-on-year and 18% month-on-month. New energy vehicle (NEV) startups fell 32% year-on-year and 17% month-on-month. The commercial vehicle sector, despite high subsidies, declined 4% year-on-year and 11% month-on-month. Japanese automakers showed relatively stronger performance in June compared to May, while gains for other second-tier automakers were mainly due to growth in commercial vehicles.
Most auto companies' valuations in 2026 are within the low range of the past 18 months. This reflects the market digesting the "electrification premium" bubble from the 2023-2025 period. Traditional automakers have seen the most significant valuation compression, as the market reassesses the risk-reward ratio during the transition period between heavy investment in electrification and the eventual release of profits. Despite overall valuation pressure, sales growth in the new energy and export sectors remains robust, significantly outpacing traditional internal combustion engine vehicles. This indicates the market is not applying a blanket approach but maintains relatively higher tolerance for sub-sectors with clear growth logic, such as NEVs and overseas markets. The divergence between growth rates and valuations suggests this growth is not yet fully reflected in stock prices.
The valuation shift in 2026 essentially represents a market rebalancing between rising costs and the ability to realize profits. Companies that can protect their margins amid price wars and maintain a steady pace in their electrification transition will gain greater valuation elasticity in the next cycle. For the industry itself, this valuation correction is forcing automakers to focus on supply chain autonomy and controllability, pushing the industry toward a healthier development path. In June, domestic-focused automakers faced relatively greater pressure, while commercial vehicles performed better due to exceptionally supportive subsidy policies. Exports remain the core growth driver for new energy vehicles, with companies strong in exports performing relatively better.
Valuation Metrics for Listed Automakers
Analyzing comprehensive metrics like the price-to-earnings (P/E) and price-to-book (P/B) ratios, companies like Tesla have relatively high P/E ratios. Tesla, with its 10.5 trillion yuan scale, has a P/E ratio around 400x. Other NEV companies like Li Auto Inc. (NASDAQ: LI) also had relatively high P/E ratios in their early stages. Lower P/E ratios are primarily seen in slower-growing international firms, represented by Toyota, Honda, General Motors, Ford, and Stellantis, with P/E ratios between 5x and 9x. Among stronger-performing domestic traditional automakers, Chery Auto has a P/E ratio around 10x. From a P/B ratio perspective, some companies have seen significant declines. Stellantis has a P/B ratio of only 0.2, and Honda's is around 0.5. General Motors and Ford have P/B ratios of 1.1 and 1.5, respectively. Overall, the valuation of traditional international automakers is relatively low, while the valuation of NEV startups and international leaders like Tesla remains favored by investors.
Non-Automaker Segments of the Domestic Auto Industry Chain
The situation for listed companies in the automotive industry chain is complex. Auto parts companies are performing relatively well, while dealer groups are under significant pressure. Automakers have lost pricing power, leading to an imbalance in industry profits, with upstream sectors squeezing downstream ones. Mining-related stocks have surged, auto parts are relatively stable, battery makers are seeing divergence, automakers are struggling, and dealer groups face immense pressure. Looking at export unit prices in RMB terms, the decline this year has been substantial. Lithium battery export prices have been falling for several years, regardless of lithium carbonate price fluctuations. The export price for lithium batteries fell 26% from 142,900 yuan in 2024 to 112,300 yuan in 2025 (a 21% drop), and further to 104,800 yuan in 2026 (a 12% drop). In May, the average price of batteries exported from China was 105,500 yuan, down 8% year-on-year. The price decline in April-May, following a reduction in tax rebates, showed a noticeable improvement compared to last year's trend.
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