Automotive Stocks Continue Recent Rebound as New Industry Cost Calculation Rules Take Effect

Stock News07-16 11:03

Automotive stocks in Hong Kong are extending their recent upward trajectory.

At the time of writing, XPeng-W (09868) shares were up 7.99% to HK$56.75. Voyah Auto (07489) gained 5.32% to HK$3.17. Leapmotor (09863) rose 4.55% to HK$37.70, while Li Auto-W (02015) advanced 4.04% to HK$50.75.

The sector's momentum follows the official release of a new industry standard. On July 15, the China Association of Automobile Manufacturers formally launched the "China Automotive Industry Whole Vehicle Cost Calculation Rules" group standard. This marks the first unified set of cost calculation rules for the entire vehicle sector in China.

This new standard addresses a long-standing industry issue of inconsistent cost accounting methods and a lack of benchmarking. It is seen as a key measure to curb disorderly price competition and promote high-quality development within the automotive industry. It also represents a significant achievement in building industry consensus and establishing self-regulatory rules.

In related analysis, CITIC Securities noted that the domestic passenger car market faced pressure in the first half of the year due to factors including the phase-out of purchase tax incentives, demand being pulled forward, and consumer price hesitation, with exports serving as the primary growth driver.

Looking ahead to the second half of this year and next, CITIC Securities believes the industry's focus will shift to the realization of export growth and profit recovery. Leading automakers are expected to achieve volume and profit growth through advancing multiple powertrain types, establishing overseas factories, and forming external partnerships.

While domestic competition remains intense, the trend towards premiumization continues to be a key theme worth watching.

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