GXED(SH:600617) Yang Guang Wang·2025-11-12 01:27Core Insights - The Chinese automotive industry continues to experience significant growth in the new energy vehicle (NEV) sector, with production and sales increasing by over 30% year-on-year from January to October 2023 [1][2] - In October, NEV sales surpassed 50% of total new car sales for the first time, indicating a strong market shift towards electric vehicles [1] - The total automotive production and sales in China reached 27.69 million units, with NEVs accounting for 1.30 million units produced and 1.29 million units sold, reflecting growth rates of 33.1% and 32.7% respectively [1] Industry Developments - The Chinese government is set to adjust the NEV purchase tax from full exemption to a 50% reduction starting January 1, 2026, with a maximum tax reduction of 15,000 yuan per vehicle [2] - In response to this upcoming change, car manufacturers are launching tax incentive programs to ensure consumers purchasing vehicles before the end of November can still benefit from full tax exemptions [2] - The "trade-in" policy has significantly influenced consumer behavior, with 60% of consumers opting for NEVs when applying for trade-in subsidies, thereby facilitating a transition to greener vehicles [2] Market Impact - The trade-in policy is expected to result in over 12 million subsidy applications by the end of the year, potentially driving new car sales close to 1.7 trillion yuan [2]