BOCOM INTL: Consumers stimulated by the 2026 tax incentives are buying cars at the end of the year, leading to a decrease in sales in the first quarter.

BOCOM INTL released a research report stating that China's new energy vehicle sales in November continued to grow overall, with LEAPMOTOR (09863) and Hongmeng Zhihang reaching a monthly high. Although some provinces raised the threshold for replacement subsidies and trade-in subsidies in November, benefiting from the adjustment of the purchase tax in 2026, as well as end-of-year promotional activities by various car companies, the overall new energy vehicle industry remains strong. The bank believes that the adjustment of the new energy vehicle purchase tax exemption policy in 2026 is expected to stimulate consumers to purchase cars in large numbers before the end of this year, coupled with car manufacturers pushing for sales volume at the end of the year and stocking up before the Spring Festival, it is expected to offset the impact of the increase in the threshold for replacement subsidies. However, after the concentrated sales volume in the fourth quarter, the first quarter of next year may return to the seasonal off-peak period. It is recommended that investors seize the structural market and remain cautious, focusing on short-term fluctuations. It is recommended to pay attention to XPENG-W (09868) launching its extended-range models one after another, and overseas localization production driving sales and profit margin improvement; GEELY AUTO (00175) privatizing to promote internal resource integration after securing funding; Chongqing Sokon Industry Group Stock (09927) expanding its high-end market with the Wenjie series and improving profitability.