Automotive stocks were among the biggest decliners in the Hong Kong market. At the time of writing, LI AUTO-W (02015) was down 9.33% to HK$68.55, GWMOTOR (02333) fell 3.66% to HK$11.07, GAC GROUP (02238) dropped 2.61% to HK$2.61, and XPENG-W (09868) declined 1.06% to HK$60.65.

The sector is under pressure as a wave of price cuts sweeps through the gasoline vehicle market. Notably, on May 15th, Chongqing Changan Automobile Company Limited launched its Eado Classic model at a price of 64,900 yuan, representing a 26% discount off the suggested retail price of 87,900 yuan.

Data from the China Passenger Car Association (CPCA) shows that the average discount for new gasoline vehicle models priced around 131,000 yuan in April reached 23,000 yuan, a discount rate of 17.2%.

Further dampening sentiment, the latest CPCA figures reveal that national passenger vehicle retail sales in April totaled 1.384 million units, marking a significant year-on-year decline of 21.5% and a month-on-month drop of 16%. Concurrently, the penetration rate of new energy vehicles surged to 61.3%.

Huaxing Securities noted that rising oil prices since March have significantly impacted domestic gasoline vehicle sales. Consumer demand is accelerating its shift from gasoline-powered vehicles to new energy vehicles, making the market's "fuel-electric split" increasingly pronounced.