Citi: XIAOMI-W (01810) Sees Decline in Auto Sales Last Week, May Need to Consider Promotions

Stock News
Oct 23

Citi’s recent report indicates that the domestic auto market has continued to cool down following the long holiday, aligning with previous trends. According to media reports, XIAOMI-W (01810) has faced safety incidents concerning its vehicles, leading some customers to cancel deposits on orders, resulting in a drop in weekly orders from an average of 5,500 units in September to about 4,000 units last week. Due to negative consumer sentiment, Citi believes that XIAOMI may need to consider promotions and improve vehicle design to enhance safety. From an industry perspective, Citi anticipates that automakers will utilize their own funds to provide consumers with full tax incentives until the end of Q1 next year, as regulators are expected to halve related incentives next year; this may temporarily pressure automakers' free cash flow.

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