Auto stocks advanced in afternoon trading. At the time of writing, Li Auto-W (02015) rose 4.44% to HK$68.2; BYD Company (01211) increased 4.17% to HK$102.4; NIO-SW (09866) was up 3.65% to HK$38.02; and XPeng-W (09868) gained 3.23% to HK$75.
On the news front, Galaxy Securities pointed out that looking ahead to 2026, in the domestic market, although the purchase tax for new energy vehicles will change from exemption to a halved levy (5%) and the "Two New" policies will be adjusted to provide fixed-ratio subsidies based on vehicle price—indicating a marginal diminishing effect of policy support—2026 marks the beginning of the 15th Five-Year Plan, where stimulating consumption remains a key focus. It is expected that the continuation of the "Two New" policies will still provide some support to the domestic auto market.
In overseas markets, it is anticipated that the international influence of self-owned brand new energy products will continue to rise, leading the new energy transition in foreign markets. China's automobile exports are expected to continue improving.
The combination of optimized and extended domestic policies and favorable overseas exports is expected to support steady and positive auto sales in 2026.
