New automakers' sales surge. how about after-market opportunities?

New energy vehicle sales rebounded higher in May, with New Energy ETF and Intelligent Car Index both surging. In this regard, Zhongtai Securities said that with the full resumption of the automotive industry chain to resume production, coupled with the vehicle purchase reduction by half and the addition of stimulus policies in many places, auto consumption is expected to usher in a full recovery.

The top three New automakers in May were LI Auto, Nezha, and Xiaopeng. Because the auto industry chain is back in operation, sales of New automakers rebounded significantly in May, with the top four sales all exceeding 10,000 units.

(1) LI Auto: Production partially resumes, sales up sharply YoY in May. 11,496 units of RISO ONE delivered, up 166% YoY and 176% QoQ. The significant increase in sales was mainly due to the gradual resumption of production by RISO's parts suppliers. In addition, the new RISO L9 model will be officially launched on June 21, and deliveries are expected to start in August.

(2)Xiaopeng: Zhaoqing’s factory resumed double-shift production in mid-May, and accelerated delivery of backlogged orders. With the gradual recovery of the auto supply chain, Zhaoqing‘s factory resumed double-shift production in mid-May, and a large number of backlogged orders on hand have been delivered faster. 10,125 units of Xiaopeng Auto were sold in May, up 78% YoY and 12% QoQ.

As of May 28, the capacity of the SAIC Lingang factory has been restored to about 80%. As of May 31, the capacity of Tesla has been restored to 70% and double-shift production has been resumed. On June 1, Shanghai canceled the "white list" audit and began to enter a full recovery phase, the auto industry chain is about to resume work.

On May 31, the MOF and the SAT issued the "Announcement on the Reduction of Vehicle Purchase Tax for Some Passenger Cars". Based on the policy of halving the purchase tax, many places further increased their policies to promote consumption.

Beijing gives subsidies of up to 10,000 yuan per unit to individual consumers who purchase new energy passenger vehicles in the city's auto sales enterprises and register them; Guangdong implements a special action to exchange old vehicles for new ones, with a maximum subsidy of 10,000 yuan per unit for new energy vehicles.