Lyon: August sees a seasonal rebound in car sales, with BYD COMPANY (01211) as the top choice.

Lyon has released a research report stating that although car sales in mainland China in August are still affected by seasonal factors, they continue to show a gentle recovery, with major manufacturers experiencing a month-on-month sales increase of 6%. However, dealers have intensified promotional efforts to boost sales, resulting in ongoing price pressure. In the context of weak consumption, the firm believes that the launch of new models and promotional activities remain key catalysts for sales growth, hence BYD COMPANY (01211) and LEAPMOTOR (09863) are showing relatively resilient performance. The firm anticipates that weak demand will persist until the end of the year, and a recovery is expected in 2027 as previously accumulated demand is gradually digested. The market expects the government to roll out further policies, including adjustments to export value-added tax refunds, to promote industry consolidation. BYD Company Limited remains Lyon's industry preferred stock.