HK Stock Market Move | LI AUTO (02015) falls nearly 4% in intraday trading, vehicle purchase incentives may drag down first-quarter profits, intensified competition may trigger price wars.

LI AUTO-W (02015) fell nearly 4% during trading hours and fell 3.01% as of the time of writing, closing at HK$85.5, with a turnover of HK$646 million. On the news front, LI AUTO recently launched a replacement subsidy guarantee. Users who order and deliver LI AUTO vehicles from January 1st to January 31st, 2025, and do not qualify for local replacement subsidies in the area where the purchase invoice is located by March 31st, can enjoy a cash subsidy of RMB 15,000 per vehicle. Citibank's research report stated that about ten car companies including LI AUTO have announced various car purchase incentive measures to alleviate the impact of subsidy expiration. The bank believes that the measures taken by car companies are aimed at coping with the slow season in early 2025, but may have a negative impact on profitability in the first quarter of this year. BOCOM INTL also stated that after the sales surge in December last year, the car market has entered a slow sales season, intensifying competition and sparking price wars.