The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0632 GMT - The EU-China progress on auto tariffs could be marginally positive for Chinese automakers with large European exposure, Citi analysts write in a note. The Sino-EU tariff negotiations look to be heading in a constructive direction, with EU and China agreeing to replace the July 2024 EU tariffs on imports of China EVs with a new minimum price commitment, they add. In the domestic China market, Citi anticipates BYD's large-battery plug-in hybrid product launch will bring them early-mover advantages in the facelift cycle after Lunar New Year, they add.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0244 GMT - Chinese automakers with EU exposure will likely benefit the most from recent progress in advanced talks between China and the EU on price commitments for full electric vehicles, DBS analysts say in a note. The two sides aim to address subsidy concerns without relying solely on tariffs, DBS adds. Reduced tariff risks can enhance export competitiveness, improve profit margins and support international growth strategies amid softening domestic demand, DBS says. Companies including SAIC, BYD, XPeng, Leapmotor and Geely will likely benefit the most given their higher EU exposure. In contrast, domestically focused players like Li Auto and NIO may see milder effects, they add. DBS's top picks are Geely and XPeng, given their higher volume growth and broad mass-market product portfolio, the analysts say. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0058 GMT - Kia's lagging shares could catch up with the strong gains of its parent auto group in 1H, Daiwa Capital analysts Henny Jung and Yoonkie Bae write in a note. The South Korean carmaker's earnings recovery and participation in the parent Hyundai Motor Group's physical artificial-intelligence investments could underpin Kia's anticipated catch-up, the analysts say. Kia is likely to reduce tariff costs by increasing its U.S. production and improve profitability by expanding the share of hybrid electric vehicles in its product mix, they say. Daiwa raises its target price for Kia by 14% to KRW160,000 and keeps a buy rating. Shares are 3.4% higher at KRW133,700. (kwanwoo.jun@wsj.com)
1727 GMT - Porsche AG shares tumble on concerns that market expectations for the luxury automaker's results may be too high. Traders cited by Reuters say Oddo, a broker, sees consensus forecasts as too high after a meeting with the company's finance chief. Earlier in the day Volkswagen--Porsche AG's majority owner--announced that it delivered fewer cars last year as it suffered under competition from China and U.S. tariff pressure. Those results weigh more broadly on investors' outlook for German automakers. Porsche AG shares are down 6% to trade at 44.35 euros. Elsewhere, BMW is down 1.7%, while Volkswagen and Mercedes-Benz slip 1.3% and 1%, respectively. (josephmichael.stonor@wsj.com)
1250 GMT - European defense stocks rise on Monday after President Trump said on social media on Saturday that the U.S. stands ready to help Iranian protesters. U.K. defense group BAE Systems gains 2.3%, while German defense manufacturer Renk Group advances 3.3%. Sweden's Saab is up 2%, while France's Dassault Aviation and Thales increase 1.75% and 1.65%, respectively. Germany's biggest arms maker, Rheinmetall, lags behind, gaining 0.95%. (cristina.gallardo@wsj.com)
1022 GMT - Hong Kong-listed Chinese companies will likely focus on maintaining their market shares while keeping subsidy costs in check, HSBC analyst Charlene Liu says in a research note. HSBC highlights the electric-vehicle sector as a key focus area for offshore earnings growth in 2026, with its auto team expecting resilient EV demand as market penetration rates rise and subsidies remain in place. The bank also expects robotaxi commercialization to accelerate as major players roll out aggressive fleet expansion plans in China. Valuations of H shares remain reasonable, with stocks trading at a meaningful discount to the broader region. While A shares still command a premium, the gap has narrowed significantly, the bank adds, noting it has no clear preference between the two. (jason.chau@wsj.com)
(END) Dow Jones Newswires
January 13, 2026 04:20 ET (09:20 GMT)
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