HSBC: Electric vehicle prices and sales in China face challenges, prices will continue to be under pressure in the coming months.

HSBC Global Research report pointed out that the prices and sales of electric vehicles in China are facing challenges, mainly due to subdued demand and decreased consumer transactions. With new car prices generally lower than pre-sale prices recently, and summer being typically a slow season, the bank expects the price environment for electric vehicles in China to continue to be under pressure in the coming months. In addition, the industry is undergoing consolidation, leading to short-term volatility. Furthermore, as the payment cycles of original equipment manufacturers shorten, suppliers will benefit from this. HSBC sees more challenges for pricing and production in the industry, and favors stable suppliers such as Fuyao Glass, CATL, and Topband over original equipment manufacturers.