0228 GMT - China's auto sales growth will likely recover in the coming months, especially for electric vehicles and plug-in hybrids, says Daiwa analyst Kelvin Lau. Market momentum has improved in recent weeks, compared with early 2026, as reflected in weekly orders. Recent new and updated models, such as XPeng's Mona M03, Leapmotor's A10 and D19, NIO's ONVO L80, and Xiaomi's SU7, will likely drive the improved volume recovery, Lau says. Chinese automakers' increasing focus on exports may lead to further sector rerating, he adds. The analyst notes investors' interest in Chinese automakers' overseas expansion at the Beijing Auto Show in April. Investors have shifted their focus to overseas markets, given low expectations for the domestic market, Daiwa adds. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

May 12, 2026 22:29 ET (02:29 GMT)

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