Citi: New energy vehicle companies may face potential risks in the first quarter of this year. It is recommended to consider BYD Company (01211) as a defensive investment choice.

Citi released a research report stating that there will be a concentration of new electric vehicle products launched in the domestic market this year, suggesting investors to consider BYD COMPANY (01211) as a defensive investment choice. The report mentioned that mainland new energy vehicle companies may face five potential risks in the first quarter, including the possibility of delays in the national trade-in subsidy program, a subsidy gap in the first quarter, low demand visibility in January and February, car manufacturers offering discounts to alleviate subsidy expiration pressure which may drag down first-quarter profits, and market concerns about leading car manufacturers launching a new round of price wars based on the above risks.