Auto stocks collectively trended lower. At the time of writing, XPENG-W (09868) fell 4.62% to HK$73.25; GWMOTOR (02333) dropped 4.54% to HK$13.24; and GAC GROUP (02238) declined 1.29% to HK$3.83.

On the news front, data released on January 22 showed that retail sales of narrow passenger vehicles in January are estimated to be approximately 1.8 million units, a decrease of 20.4% month-on-month and a marginal increase of 0.3% year-on-year.

Among these, retail sales of new energy passenger vehicles are estimated to reach 800,000 units, with a penetration rate of about 44.4%.

Guojin Securities stated in a research report that January is a policy transition period, leading to strong consumer wait-and-see sentiment and weaker performance in the auto market during the first half of the month.

Guotai Haitong Securities indicated that for the full year 2025, wholesale sales of passenger vehicles reached 29.908 million units, an increase of 9% year-on-year.

Considering the phase-out of the new energy vehicle purchase tax incentive and a marginal weakening of the replacement policy's intensity in 2026, it is projected that the overall passenger vehicle market sales in 2026 will be approximately 30.21 million units, up 1% year-on-year, while new energy passenger vehicle sales are expected to be around 16.85 million units, an increase of 10% year-on-year.