Changes in Hong Kong stocks | Auto stocks continue to weaken, BAIC Motor (01958) falls by more than 3%, and car companies are intensively pushing price reduction promotions

The Zhitong Finance App learned that auto stocks continued to weaken. As of press release, BAIC Motor (01958) fell 3.13% to HK$1.86; Ideal Automobile-W (02015) fell 2.25% to HK$65.3; GAC Group (02238) fell 1.99% to HK$3.95; and Great Wall Motor (02333) fell 1.23% to HK$14.47.

According to the news, according to reports, a number of car companies are intensively launching price reduction promotions to deal with the impact of the NEV purchase tax. On January 6, Tesla China announced car purchase discounts and launched a “7-year ultra-low interest” car purchase plan for the Tesla Model 3/Y/Y L; GAC Group also announced that its own brands will launch preferential activities, including a limited-time purchase tax back-up policy, financial interest rate discount policies, and additional subsidies for replacement or scrapping. Prior to that, many car companies also announced preferential promotion policies for the first month of the new year 2026.

According to the Oriental Securities Research Report, due to the suspension of subsidies in some provinces and cities at the end of 2025, there was a certain wait-and-see attitude. Passenger car retail sales were under pressure in November and December 2025, and the impact of the late 2025 overdraft on 2026 was limited; the first batch of 62.5 billion yuan of funds to support consumer goods trade-in in 2026 was released ahead of schedule, and car purchase demand is expected to improve marginally in the first quarter. Cathay Pacific Haitong Securities believes that there is relatively little decline in subsidies for new energy vehicles and fuel vehicles in the medium to high price range, which has a positive impact on the automotive industry's backlash and the industry's overall profit margins.