J.P. Morgan believes that due to factors such as further increases in raw material costs, the automobile industry will continue to be under pressure in the short term. Based on current valuation levels, the bank downgraded BYD, Geely and Zero Sports to neutral ratings. The bank also downgraded Xiaopeng Motor's rating to “neutral.” J.P. Morgan believes that BYD is the domestic brand that can best withstand current structural headwinds, but at the current valuation level, its room for stock price growth is limited. The bank covered Chery Motors for the first time and gave it an “gain” rating. The target price is HK$35. It is mainly optimistic about its strong overseas business exposure and good liquidity conditions.

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