The Zhitong Finance App learned that auto stocks continued to decline. As of press release, Xiaopeng Group-W (09868) fell 4.77% to HK$36.32; Ideal Automobile-W (02015) fell 2.95% to HK$45.38; and Great Wall Motor (02333) fell 2.08% to HK$5.88.

According to the news, China's passenger car retail sales volume in October was about 1.653 million units, up 1.4% month-on-month and 27.3% year-on-year; passenger car retail sales in the narrow sense were about 1.643 million units, down 27.1% year on year. The retail sales of new energy passenger vehicles was 1.109 million units, down 13.7% year on year. The retail penetration rate climbed to 67.5%, and the wholesale penetration rate reached 67.3%, all of which reached record highs. Cui Dongshu, head of the Passenger Transport Association branch, said that the traditional “gold nine silver ten” in the car market has basically disappeared and may become the norm in the future.

Guosheng Securities believes that in an environment where domestic automobile retail sales are under pressure, overseas markets will become one of the main sources for China's automobile industry to seek growth. At the same time, considering the increase in global trade barriers, the window period for Chinese cars to go overseas is gradually narrowing. Combined with domestic policies to encourage car companies to go overseas with “high quality,” the bank is more optimistic about the future overseas space of leading car companies.

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