20231102-招银国际-NEV_sales_push_at_month-end_leads_to_Oct_beat_4页_664kb

Summary of CMBIGM China Auto Sector Update

Overview

This report covers October 2023 sales data and outlook for 11 Chinese New Energy Vehicle (NEV) automakers, highlighting a 54% year-over-year and 6% month-over-month sales increase, with several companies reaching all-time highs.

Key Findings

• Combined sales volumes of 11 automakers rose 54% year-on-year in October 2023, driven by end-of-month pushes.
• Seven out of 11 manufacturers achieved all-time high monthly sales in October.
• NEV retail sales volume is expected to exceed prior forecasts.

Company Highlights

• BYD: Wholesales hit 301,095 units, a record high, contribution to overall growth.
• Li Auto: Sales at 40,422 units; targets 50,000 units/month for FY24E, potentially beating prior projections.
• NIO: Deliveries fell 2.8% month-on-month to 16,074 units; sales strategy so far ineffective.
• Xpeng: Sales surged 30.6% month-on-month to 20,001 units, but G6 deliveries lagged; pricing issues noted for new models.
• Other performers: Great Wall Motors (30,461 units), Zeekr (13,077 units), and declines in Neta/Aion noted.

Ratings and Outlook

• Stocks rated: Li Auto (BUY), BYD (BUY), Great Wall Motors (BUY), NIO (HOLD), Xpeng (HOLD).
• NEV sector may outperform due to strong holiday demand and supply upgrades.