BOC International: 2026 exemption policy stimulates consumers to return to the low season in the first quarter of car purchases at the end of the year

The Zhitong Finance App learned that BOC International released a research report saying that overall NEV sales in China continued to grow in November. Among them, Zero Sports Auto (09863) and Hongmeng Zhixing hit new monthly highs. Although some provinces raised the threshold for replacement, renewal and trade-in subsidies in November, the overall NEV industry remained booming thanks to the 2026 purchase tax adjustments and year-end promotions by various car companies.

The bank believes that the 2026 new energy purchase tax reduction policy adjustments are expected to stimulate consumers to concentrate on car purchases before the end of this year, compounding the year-end impulse of car companies and demand to build warehouses before the Spring Festival, which is expected to hedge against some of the effects of raising the replacement subsidy threshold. However, after the fourth quarter is concentrated, the first quarter of next year may return to the seasonal off-season. Investors are advised to grasp the structural market situation, be cautious, and pay attention to short-term fluctuations.

It is recommended to focus on the successive launches of Xiaopeng Automobile-W (09868) extended-range models and increased sales and gross margin; Geely Auto (00175) promoted internal resource integration after privatizing Krypton; and the Cyrus (09927) Q series further expanded the high-end market and increased profits.