Auto stocks declined once again, with Voyah Auto (07489) falling 4.00% to HK$1.56, Chery Auto (09973) dropping 3.27% to HK$23.64, GWMOTOR (02333) slipping 2.68% to HK$6.895, and XPENG-W (09868) edging down 1.33% to HK$37.1 as of press time.
On the news front, the Ministry of Finance and the State Taxation Administration have clarified that starting from April 1, 2027, the value-added tax export rebate rate for new energy vehicles will be reduced from 13% to 9%. Orient Securities believes that this export tax rebate policy adjustment will raise the export costs of new energy vehicles, with some low-margin export models likely facing greater pressure, and is expected to have a certain impact on the export profitability of vehicle manufacturers. However, the policy provides a buffer period of nearly half a year, and automakers are expected to pass on some of the costs by raising FOB quotations and launching high-margin new models and facelifted versions.
It is worth noting that the "Notice on Further Strengthening the Management of Automotive Product Innovation Design and R&D Test Verification (Draft for Comments)" requires standardizing the new vehicle development process and sets minimum requirements for the duration and mileage of reliability testing. This will effectively improve the current situation of rapid new vehicle launches and intense facelift competition. Over the medium to long term, competitive pressure from the supply side is expected to ease, and compliant companies will benefit as a result.
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