Periodic/Sector reports
Automobile: China Auto Sector Weekly (13 Nov 26)
Highlights
- NEV sales hit a monthly record of 1.94m units in October on exports; domestic NEV sales fell 9% yoy.
- China extended its suspension of battery export controls to 10 Jan 27.
- Momenta forms a 51:49 intelligent-driving JV with SAIC Motor, which facilitates its foray into overseas markets.
- Hesai posted mixed 3Q26 results and expects robotics to contribute 50-60% of its revenue in 2027.
- XPeng will post its 3Q26 results on 16 Nov 26. We estimate 3Q26 net loss at Rmb1b (+162.6 yoy/-25.2% qoq) on ASP decline, gross margin squeeze, and spike in R&D expenses.
- Maintain MARKET WEIGHT. Top BUYs: BYD, Geely. Top SELLs: Li Auto, XPeng.
Analysis
- October sales: Exports pushed NEV sales to a monthly record, while domestic demand weakened further. The China Association of Automobile Manufacturers (CAAM) stated on 11 November that NEV sales, including exports and commercial vehicles, rose 13% yoy and 6% mom to 1.94m units in October, 64.3% of total vehicle sales. NEV exports rose 140% yoy to 606,000 units, while domestic NEV sales fell 9% yoy to 1.334m units, its 11th consecutive yoy decline.
- Retail sales came in below the preliminary estimate. The China Passenger Car Association’s (CPCA) final data put October passenger vehicle retail sales at 1.643m units, down 27% yoy, and NEV retail sales at 1.109m units, down 14% yoy, both below its preliminary estimates of 1.693m/1.148m units respectively. NEV penetration of retail sales rose to 67.5%.
- Retail sales came in below the preliminary estimate. The China Passenger Car Association’s (CPCA) final data put October passenger vehicle retail sales at 1.643m units, down 27% yoy, and NEV retail sales at 1.109m units, down 14% yoy, both below its preliminary estimates of 1.693m/1.148m units respectively. NEV penetration of retail sales rose to 67.5%.
Highlights
- NEV sales hit a monthly record of 1.94m units in October on exports; domestic NEV sales fell 9% yoy.
- China extended its suspension of battery export controls to 10 Jan 27.
- Momenta forms a 51:49 intelligent-driving JV with SAIC Motor, which facilitates its foray into overseas markets.
- Hesai posted mixed 3Q26 results and expects robotics to contribute 50-60% of its revenue in 2027.
- XPeng will post its 3Q26 results on 16 Nov 26. We estimate 3Q26 net loss at Rmb1b (+162.6 yoy/-25.2% qoq) on ASP decline, gross margin squeeze, and spike in R&D expenses.
- Maintain MARKET WEIGHT. Top BUYs: BYD, Geely. Top SELLs: Li Auto, XPeng.
Analysis
- October sales: Exports pushed NEV sales to a monthly record, while domestic demand weakened further. The China Association of Automobile Manufacturers (CAAM) stated on 11 November that NEV sales, including exports and commercial vehicles, rose 13% yoy and 6% mom to 1.94m units in October, 64.3% of total vehicle sales. NEV exports rose 140% yoy to 606,000 units, while domestic NEV sales fell 9% yoy to 1.334m units, its 11th consecutive yoy decline.
- Retail sales came in below the preliminary estimate. The China Passenger Car Association’s (CPCA) final data put October passenger vehicle retail sales at 1.643m units, down 27% yoy, and NEV retail sales at 1.109m units, down 14% yoy, both below its preliminary estimates of 1.693m/1.148m units respectively. NEV penetration of retail sales rose to 67.5%.
- Retail sales came in below the preliminary estimate. The China Passenger Car Association’s (CPCA) final data put October passenger vehicle retail sales at 1.643m units, down 27% yoy, and NEV retail sales at 1.109m units, down 14% yoy, both below its preliminary estimates of 1.693m/1.148m units respectively. NEV penetration of retail sales rose to 67.5%.
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