Zhi Tong Cai Jing·2025-09-18 07:51Core Viewpoint - The automotive sector is experiencing a decline, particularly in electric vehicle (EV) stocks, amid news that the exemption from vehicle purchase tax for new energy vehicles (NEVs) in China will end this year, leading to potential changes in consumer demand and market dynamics [1] Group 1: Stock Performance - Xpeng Motors (09868) fell by 3.95%, trading at HKD 81.55 [1] - GAC Group (601238) 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 (601633) declined by 1.26%, trading at HKD 17.26 [1] Group 2: Policy Changes - Reports indicate that 2023 is the last year for the exemption of vehicle purchase tax for NEVs in China, with the tax set to be reinstated next year [1] - According to the Ministry of Finance, from January 1, 2026, to December 31, 2027, NEVs will be subject to a 50% reduction in vehicle purchase tax [1] Group 3: Market Outlook - A report from Galaxy Futures suggests that the "Automotive Industry Growth Stabilization Work Plan (2025-2026)" aims for NEV sales to reach approximately 15.5 million units by 2025, reflecting a year-on-year growth of about 20%, which is lower than the initial forecast of 16 million units by the China Association of Automobile Manufacturers [1] - The end of the full exemption on NEV purchase tax may stimulate additional demand in the fourth quarter, potentially exceeding the outlined targets [1] - CITIC Securities indicates that with market shifts, the implementation of national subsidies in the second half of the year, and expectations of a decline in NEV purchase tax, the industry may experience a favorable market period in September and October [1]