Core Viewpoint - The automotive sector is experiencing a decline, particularly in electric vehicle stocks, as the exemption from vehicle purchase tax for new energy vehicles in China is set to end this year, leading to potential increased demand in the fourth quarter [1] Group 1: Stock Performance - Xpeng Motors (09868) fell by 3.95%, trading at HKD 81.55 [1] - GAC Group (02238) decreased by 2.57%, trading at HKD 3.41 [1] - Li Auto (02015) dropped by 2.49%, trading at HKD 101.9 [1] - Great Wall Motors (02333) declined by 1.26%, trading at HKD 17.26 [1] Group 2: Policy Changes - 2023 is the last year for the exemption of vehicle purchase tax on new energy vehicles in China, with the tax set to be reinstated next year [1] - From January 1, 2026, to December 31, 2027, new energy vehicles will be subject to a 50% reduction in vehicle purchase tax [1] Group 3: Market Outlook - A report from Galaxy Futures indicates that the "Automotive Industry Stability Growth Work Plan (2025-2026)" aims for new energy vehicle sales to reach approximately 15.5 million units in 2025, representing a year-on-year growth of about 20%, which is below the initial forecast of 16 million units by the China Association of Automobile Manufacturers [1] - The expectation of increased demand in the fourth quarter may exceed the outlined targets due to the last year of full exemption from the purchase tax [1] - CITIC Construction Investment suggests that the industry may experience a "golden September and silver October" trend, supported by the implementation of national subsidies and the anticipation of a decline in new energy vehicle purchase tax [1]