Auto stocks are broadly declining in Hong Kong trading. As of the latest report, XPeng-W (09868) dropped 4.28% to HKD 46.94, Li Auto-W (02015) fell 3.88% to HKD 49.84, BAIC Motor (01958) declined 2.87% to HKD 0.845, and Great Wall Motor (02333) slipped 2.23% to HKD 8.76.

On the news front, new energy vehicle makers have recently released their July delivery figures, with the trend of divergence among them becoming more pronounced. Specifically, Leapmotor achieved monthly sales exceeding 100,000 units, pushing the industry benchmark to a new high. XPeng-W delivered 38,027 vehicles in July, a year-over-year increase of 4% but a sequential decline of 5.23%. Li Auto-W delivered 30,468 vehicles in July, a year-over-year decrease of approximately 0.86% and a month-over-month drop of 1.38%.

Guoyuan Securities believes that as subsidies are phased out and the intense competition eases, the auto industry is focusing on market share, profitability, and technological advancement. Both domestic and export markets are equally important. The firm suggests looking past the downward pressure in the first half of the year to focus on the long-term growth of companies with strong product capabilities and the empowering role of technology in the automotive sector.