XPeng's stock (XPENG-W) surged by more than 5% in Hong Kong trading on Monday, outperforming the broader rally in the city's auto sector. The electric vehicle maker's shares were among the top gainers in a session that saw significant upward momentum for automotive stocks.

Other major players in the Hong Kong-listed auto sector also posted strong gains. NIO, another prominent Chinese EV manufacturer, saw its stock climb by 4%. Traditional automakers were not left behind, with Geely Auto and EV Dynamics both advancing 3%. BAIC Motor added 2% to its value, while Li Auto and Great Wall Motor each rose by over 1%.

While the specific catalyst for this sector-wide rally was not immediately clear, the synchronized upward movement suggests a positive sentiment towards the automotive industry, particularly in the electric vehicle segment. Investors may be responding to favorable industry news, policy developments, or improved market conditions for Chinese auto manufacturers.