CCA: Prices of non-ferrous metals surge, putting heavy cost pressure on car manufacturers. It is expected that the ability of post-holiday new energy vehicle manufacturers to reduce prices through promotions will decrease.

The China Association of Automobile Manufacturers stated that the demand for electric power storage is skyrocketing due to the global advancement of AI, leading to a sharp increase in the prices of non-ferrous metals such as copper and putting significant cost pressure on car manufacturers. With the continuous explosive growth in sales of new energy vehicles for over two years, the sharp rise in prices of resources like lithium carbonate has intensified the competition between upstream and downstream industries. It is predicted that after the holiday, the ability of new energy vehicle companies to reduce prices and promote sales will decrease, and the weak price elasticity may cause consumers to become more cautious, potentially suppressing the normal release of car purchasing demand in the short term. Price reduction is a long-term benefit, which helps to improve consumer sentiment towards purchasing vehicles, guiding the healthy development of the industry.