HK Stock Market Move | Automobile stocks continue recent declines, with no fuel vehicles in top ten passenger car sales in May. Discussion sparked by electric vehicle maintenance costs.

The automotive stocks continued their recent downward trend. As of the time of writing, Xpeng Motors-W (09868) fell by 7.05% to 55.35 Hong Kong dollars; LI AUTO-W (02015) fell by 3.93% to 52.55 Hong Kong dollars; Guangzhou Automobile Group (02238) fell by 2.07% to 2.37 Hong Kong dollars; Great Wall Motor (02333) fell by 1.55% to 10.19 Hong Kong dollars. On the news front, data from the China Passenger Car Association showed that from May 1st to 31st, the national retail sales of passenger cars were 1.545 million units, a year-on-year decrease of 20% compared to the same period last year, but a 12% increase from the previous month. It is worth noting that the May ranking of passenger car retail sales released by KnowSee showed that all of the top ten models were new energy vehicles. For the first time, traditional fuel vehicles were completely absent from that list. It's worth noting that the penetration rate of new energy vehicles has exceeded 60%, and the original fuel tax and fee system is facing restructuring. According to First Financial, several financial and tax experts have stated that from the perspectives of fairness, the shortfall in road maintenance funds, the proportion of new energy vehicle consumption, and industrial development, it is an inevitable trend for electric vehicles to bear some road maintenance costs, but there is a need to build a consensus on reform and gradually promote it.