A-Share Market Sees Surge as Automotive Stocks Experience Collective Movement

Automobile stocks experience a significant surge! Today, the automobile industry chain is witnessing considerable movement, with stocks such as Di Sheng Li, Wan Xiang Qian Chao, and Tian Qi Mo all hitting their upper price limits during trading. Seres also approached its upper limit, with a total market capitalization exceeding 260 billion yuan and its share price reaching a historic high.

Brokerage firms have indicated that, in the second half of the year, as market price wars ease, passenger car manufacturers are expected to see a recovery in profit margins. On the components side, a strong lineup of new products is anticipated to boost the performance of corresponding suppliers.

After several days of consolidation at high levels, the automobile industry chain collectively rallied today, with stocks like Yueliang Co., Di Sheng Li, Wan Xiang Qian Chao, Tian Qi Mo, Shu Guang Co., and Cheng Fei Integration surging to their upper limits during trading. Other stocks such as Mei Chen Technology, Ying Li Automobile, Kai Zhong Co., and Zhejiang Shi Bao also saw gains. Seres opened strongly and reached its upper limit within 20 minutes of trading, with its highest price peaking at 163.52 yuan per share, marking a new historical high. However, the upper limit was subsequently lifted, leading to a significant increase in trading volume. As of the time of reporting, Seres was up by 7.90%, with a trading volume exceeding 13 billion yuan.

In terms of news, Seres announced last night that the company’s issuance of H shares has been filed with the China Securities Regulatory Commission. According to the announcement, Seres has recently received a notice from the CSRC, indicating its intention to issue no more than 331 million shares of overseas-listed common stock on the Hong Kong Stock Exchange. If the overseas issuance and listing are not completed within 12 months from the issuance of the notice, the company must update its filing materials if it wishes to continue.

Additionally, on the evening of September 23, Hong Meng Zhi Xing held its autumn new product launch event, officially introducing the new Wen Jie M7. According to news from Hong Meng Zhi Xing on September 24, over 40,000 units of the new Wen Jie M7 were pre-ordered within 24 hours of its launch. Hua Chuang Securities predicts that with the release of new models, Seres’ sales and profitability are likely to improve steadily. Furthermore, the acceleration of Hong Kong IPOs marks a promising international expansion for the company.

Looking at the overall automotive industry, August saw a return to both month-on-month and year-on-year growth in China’s automotive sector. In August, vehicle production and sales reached 2.815 million and 2.857 million units, respectively, representing month-on-month increases of 8.7% and 10.1%, and year-on-year increases of 13.0% and 16.4%. From January to August, cumulative production and sales totaled 21.051 million and 21.128 million units, reflecting year-on-year growth rates of 12.7% and 12.6%. Compared to the first seven months, production remained stable, while sales expanded by 0.6 percentage points.

In August, new energy vehicles (NEVs) saw production and sales of 1.391 million and 1.395 million units, respectively, with month-on-month increases of 11.9% and 10.5%, and year-on-year increases of 27.4% and 26.8%. The sales of new energy vehicles accounted for 48.8% of total new vehicle sales. This data indicates a steady increase in the penetration of new energy vehicles in the domestic market, with consumers increasingly accepting these vehicles.

The China Automobile Circulation Association has noted that as the “Golden September and Silver October” consumption peak season begins, major autumn auto shows are launching, and dealers are ramping up promotions at the end of the quarter. Coupled with the dual festive effect of Mid-Autumn and National Day, the demand for vehicle purchases is expected to be rapidly released, supporting a sustained increase in terminal sales throughout September.

Based on these factors, along with the sales figures from August and the growth rate of dealer data in the first half of September, it is estimated that the total terminal sales of passenger vehicles in September will reach 2.2 million units. Data disclosed by the China Automobile Circulation Association on September 24 shows that from September 1 to 21, the national retail market for passenger vehicles reached 1.191 million units, reflecting a year-on-year growth of 1% and an 8% increase compared to the same month last year. From January to September, total retail sales reached 15.955 million units, a year-on-year increase of 9%. During the same period, retail sales of new energy vehicles reached 697,000 units, reflecting a year-on-year growth of 10% and an 11% increase compared to the previous month. The penetration rate of new energy vehicles in the national passenger vehicle market hit 58.5%, with cumulative retail sales of 8.267 million units year-to-date, marking a 24% year-on-year increase.

Industry analysts remain optimistic about investment opportunities in the sector. Cui Dongshu, Secretary-General of the Passenger Car Association, recently revealed that in August 2025, China achieved an export of 764,000 vehicles, a year-on-year increase of 25% and a month-on-month increase of 12%. From January to August, total vehicle exports reached 4.94 million units, reflecting a year-on-year growth of 21%, indicating a generally strong trend. In August 2025, China exported 315,000 new energy vehicles, marking an 83% year-on-year increase. From January to August 2025, exports of new energy vehicles totaled 2.02 million units, a year-on-year increase of 51%, with growth rates exceeding the 24% growth seen in the same period of 2024.

In August, China also exported 100,000 plug-in hybrid vehicles, representing a year-on-year increase of 304%, accounting for 10% of total vehicle exports, an increase of 8 percentage points year-on-year. Additionally, 220,000 pure electric vehicles were exported, showing a year-on-year increase of 48% and comprising 31% of total vehicle exports, an increase of 3 percentage points year-on-year. Cui Dongshu emphasized that the performance of China’s new energy vehicle exports from January to August 2025 has exceeded expectations, primarily due to the growing demand for plug-in hybrids and hybrids as substitutes for pure electric vehicles. Plug-in hybrid pickups, in particular, have demonstrated strong export performance, making them standout products in the commercial vehicle sector.

China’s new energy vehicle exports are showing high-quality development towards the Middle East and developed countries, especially in Western Europe and Asia. China International Capital Corporation anticipates that by 2025, the penetration rate of new energy vehicles in China will surpass 50%. Leveraging technological advancements, Chinese brands are expected to lead the domestic new energy market share. With scale advantages and operational efficiency, China is poised to remain the global leader in automotive exports, with domestic automakers set to accelerate their international expansion into deeper markets.

By 2030, it is projected that domestic brands could achieve a production scale of nearly 30 million units globally, fostering several companies with annual production capacities exceeding 5 million units. Analysts suggest that Chinese automakers are likely to gain substantial market share in overseas new energy markets, benefiting from the rapid penetration of new energy vehicles abroad. By 2025, overseas sales of new energy vehicles are expected to reach 6.66 million units, with a penetration rate of 12%.

Furthermore, the favorable policies and supply-and-demand dynamics in the European market are expected to catalyze growth, with the EU aiming for a new energy penetration rate of 65% by 2030, driving overseas sales of new energy vehicles to 20 million units, and achieving a compound annual growth rate of 26% with a penetration rate of 33%.

Additionally, it is projected that by 2030, overseas sales of Chinese brands may exceed 9 million units, with new energy vehicles accounting for over 5.5 million units and capturing a 25% market share.

Looking ahead to the second half of 2025, Hua Long Securities notes that in the automotive sector, the price war in the passenger vehicle market is easing, which is expected to restore profit margins for manufacturers. The commercial vehicle market is anticipated to continue its upward trend with the support of favorable policies. On the components side, a strong array of new products is expected to drive performance for suppliers, alongside a rapid increase in the penetration of intelligent driving systems. Strong customers and growing segments are likely to achieve growth above the industry average, maintaining a “recommended” rating for the automotive sector. Zhongyuan Securities also maintains a “stronger than market” investment rating for the automotive industry. This brokerage firm highlights that the Ministry of Industry and Information Technology and seven other departments have recently issued a work plan to stabilize growth in the automotive sector, scientifically setting growth targets and proposing specific measures. The ongoing implementation of the vehicle trade-in policy is expected to stimulate consumption in the automotive market.

In conclusion, attention should be paid to the impact of the trade-in policy on automotive market consumption, the progress of the automotive industry’s regulatory work, and investment opportunities in relevant component industries driven by the development and commercialization of intelligent driving technology.