Auto stocks extended their declines. As of press time, XPeng-W (09868) fell 4.33% to HK$35.38; Li Auto-W (02015) dropped 4.32% to HK$43.84; and GWMOTOR (02333) declined 2.86% to HK$6.625.
On the news front, data from the China Automobile Dealers Association showed that retail sales in the national passenger vehicle market totaled 789,000 units from October 1 to 18, down 26% year-on-year compared with the same period last October. Wholesale volume from manufacturers reached 853,000 units, down 20% year-on-year. New energy vehicle retail sales came in at 520,000 units, down 13% year-on-year.
The "Golden September" was similarly lackluster. The automobile dealer inventory warning index stood at 63.2% in September, remaining above the boom-or-bust line for consecutive periods, with 54.2% of dealers saying the peak-season effect was noticeably weaker than in previous years.
Central China Securities said in a research report that the auto industry in September showed a pattern of "domestic demand under pressure, strong export growth, channel inventory buildup, and structural divergence." On the domestic demand side, there was an obvious seasonal rebound, but the year-on-year decline widened further compared with August. Domestic demand remained weak under pressure from last year's high base and a wait-and-see sentiment. On the export side, volumes stayed above one million units for a fourth consecutive month, with the share of new energy vehicle exports rising to 54.2%, making overseas expansion still the industry's strongest engine. On the channel side, the automobile dealer inventory coefficient rose to 1.68 in September, a high level for the same period in recent years, reflecting an intensifying contradiction between automakers pushing inventory during peak season and weak end-market absorption.
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