Periodic/Sector reports
Automobile: China Auto Sector Weekly (19-25 Sep 26)
Highlights
- Three recent launches – BYD Denza Z9S, Geely Galaxy all-new E5, and XPeng G9L – have attracted high market attention.
- Competition has shifted from the vehicle to the network, favouring big OEMs as scale matters.
- Lithium carbonate recovered to Rmb128,900/tonne; CATL began trial cell production in Hungary.
- Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, CATL, and Minth. Top SELL: Li Auto.
Analysis
- New model launches: Three recent launches – BYD Denza Z9S, Geely Galaxy all-new E5, and XPeng G9L – have attracted high market attention.
- Denza Z9S. BYD opened Z9S pre-sales on 16 Sep 26 at Rmb319,800-389,800, and then launched the car on 23 Sep 26 at Rmb255,800-325,800, vs Xiaomi SU7’s Rmb219,900-303,900, Luxeed S7’s Rmb239,800-299,800, and Zeekr 001’s Rmb269,800-329,800. The lower launch prices vs the pre-sales prices should be viewed as a normal market strategy, not a disguised discount. We expect Z9S to contribute steady-state monthly sales of 5,000 in 4Q26, vs August sales of 373,626 units.
- Geely Galaxy E5. Geely launched the new Galaxy E5 on 23 Sep 26 at a limited-time starting price of Rmb97,800, vs old Galaxy E5’s Rmb109,800, BYD Yuan Plus’ Rmb119,800, Aion Y’s Rmb109,800, Leapmotor C10’s Rmb128,800, and Deepal S05’s Rmb119,900. Additionally, the new Galaxy E5 has some features unseen in the old version: 800V platform, 6C charging at a peak 460 kW, and a LiDAR-based assisted-driving system. The old Galaxy E5 sold 4,617 units in Aug 26, vs a peak of 14,000 units, and we expect monthly sales of the new Galaxy E5 to exceed 10,000 units before end-26, vs August sales of 270,194 units.
- Denza Z9S. BYD opened Z9S pre-sales on 16 Sep 26 at Rmb319,800-389,800, and then launched the car on 23 Sep 26 at Rmb255,800-325,800, vs Xiaomi SU7’s Rmb219,900-303,900, Luxeed S7’s Rmb239,800-299,800, and Zeekr 001’s Rmb269,800-329,800. The lower launch prices vs the pre-sales prices should be viewed as a normal market strategy, not a disguised discount. We expect Z9S to contribute steady-state monthly sales of 5,000 in 4Q26, vs August sales of 373,626 units.
Highlights
- Three recent launches – BYD Denza Z9S, Geely Galaxy all-new E5, and XPeng G9L – have attracted high market attention.
- Competition has shifted from the vehicle to the network, favouring big OEMs as scale matters.
- Lithium carbonate recovered to Rmb128,900/tonne; CATL began trial cell production in Hungary.
- Maintain MARKET WEIGHT. Top BUYs: BYD, Geely, CATL, and Minth. Top SELL: Li Auto.
Analysis
- New model launches: Three recent launches – BYD Denza Z9S, Geely Galaxy all-new E5, and XPeng G9L – have attracted high market attention.
- Denza Z9S. BYD opened Z9S pre-sales on 16 Sep 26 at Rmb319,800-389,800, and then launched the car on 23 Sep 26 at Rmb255,800-325,800, vs Xiaomi SU7’s Rmb219,900-303,900, Luxeed S7’s Rmb239,800-299,800, and Zeekr 001’s Rmb269,800-329,800. The lower launch prices vs the pre-sales prices should be viewed as a normal market strategy, not a disguised discount. We expect Z9S to contribute steady-state monthly sales of 5,000 in 4Q26, vs August sales of 373,626 units.
- Geely Galaxy E5. Geely launched the new Galaxy E5 on 23 Sep 26 at a limited-time starting price of Rmb97,800, vs old Galaxy E5’s Rmb109,800, BYD Yuan Plus’ Rmb119,800, Aion Y’s Rmb109,800, Leapmotor C10’s Rmb128,800, and Deepal S05’s Rmb119,900. Additionally, the new Galaxy E5 has some features unseen in the old version: 800V platform, 6C charging at a peak 460 kW, and a LiDAR-based assisted-driving system. The old Galaxy E5 sold 4,617 units in Aug 26, vs a peak of 14,000 units, and we expect monthly sales of the new Galaxy E5 to exceed 10,000 units before end-26, vs August sales of 270,194 units.
- Denza Z9S. BYD opened Z9S pre-sales on 16 Sep 26 at Rmb319,800-389,800, and then launched the car on 23 Sep 26 at Rmb255,800-325,800, vs Xiaomi SU7’s Rmb219,900-303,900, Luxeed S7’s Rmb239,800-299,800, and Zeekr 001’s Rmb269,800-329,800. The lower launch prices vs the pre-sales prices should be viewed as a normal market strategy, not a disguised discount. We expect Z9S to contribute steady-state monthly sales of 5,000 in 4Q26, vs August sales of 373,626 units.
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