Chinese Automakers With EU Exposure to Benefit From Reduced Tariff Risks -- Market Talk

Dow Jones01-13

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)

(END) Dow Jones Newswires

January 12, 2026 21:44 ET (02:44 GMT)

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