Automotive stocks were among the biggest decliners in the Hong Kong market. At the time of writing, XPENG-W (09868) fell 4.37% to HK$63.45, GWMOTOR (02333) dropped 2.11% to HK$13.02, and LI AUTO-W (02015) declined 1.7% to HK$72.2. The declines come amid a wave of price increases impacting the automotive industry chain. Since the start of 2026, a significant rebound in lithium carbonate prices, tight supply of automotive-grade storage chips, and persistent industry competition have driven the vehicle sector into a cost-driven price adjustment cycle. Since mid-April, the domestic tire industry has witnessed its second round of price hikes this year, with over 70 tire manufacturers having issued price increase notices by April 20. Rising costs across various components are fueling a wave of price increases by automakers. According to an incomplete tally, more than 15 new energy vehicle manufacturers have announced product price increases or reductions in end-user discounts this year, with hikes ranging from 2,000 to 10,000 yuan. Data shows that from January to March 2026, the average price of domestic passenger vehicles increased by 15,000 yuan, 15,000 yuan, and 7,000 yuan respectively compared to the same period last year, with new energy vehicle prices showing a particularly notable upward trend.