0946 GMT - China's auto demand this year will likely remain broadly flat given front-loading in 2024 and softer momentum into late 2025, HSBC Global Research analysts write in a note. The trade-in subsidies are extended, but the support is scaled back as the amounts are capped relative to vehicle prices, reducing benefits for lower-priced models and making policy less directional than prior years, they say. The EV demand growth is set to moderate to around 15% this year, they add. Some late 2025 demand may roll into early 2026, but this is not enough to alter the normalization trend given weak consumption sentiment in general in China, they say. Among the Chinese automakers, HSBC Global Research favors BYD and XPeng. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

January 20, 2026 04:46 ET (09:46 GMT)

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