Zhi Tong Cai Jing·2025-07-30 06:00Core Viewpoint - The automotive sector is experiencing a decline in stock prices, with significant drops observed in companies like Li Auto, Xpeng Motors, GAC Group, and Great Wall Motors, amidst mixed retail sales data for July 2025 [1] Group 1: Stock Performance - Li Auto-W (02015) shares fell by 12.34%, trading at HKD 105.1 [1] - Xpeng Motors-W (09868) shares decreased by 5.34%, trading at HKD 70.85 [1] - GAC Group (02238) shares dropped by 2.65%, trading at HKD 3.31 [1] - Great Wall Motors (02333) shares declined by 2.06%, trading at HKD 13.3 [1] Group 2: Market Data - From July 1 to July 20, 2025, the national retail sales of passenger cars reached approximately 978,000 units, reflecting a year-on-year growth of 11% but a month-on-month decline of 12% [1] - The narrow passenger car retail market for July 2025 is projected to be around 1.85 million units, showing a year-on-year increase of 7.6% and a month-on-month decrease of 11.2% [1] - New energy vehicle retail sales are expected to reach about 1.01 million units, with a penetration rate of approximately 54.6% [1] Group 3: Industry Insights - Changjiang Securities indicates that the financial health of the automotive industry is currently strong compared to both domestic and international peers, but warns of pressures on profitability due to intensified competition and price declines [1] - The industry is advocating against "involution" competition to maintain a healthy competitive environment, which may support the sustainable development of the automotive sector [1] - There is optimism regarding the opportunities in the strong intelligent driving vehicle segment during the new cycle of intelligent driving upgrades, as well as the potential recovery of leading manufacturers affected by joint venture price cuts [1] - Despite a slowdown in overall export growth, there is a structural high growth in new energy vehicle exports, which is viewed positively [1]