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BOCI Predicts CN Auto Sector to Get Off to Good Start This Yr, but Enter Destocking Phase in 1Q
2026-01-02 14:32:41
The State Council, along with multiple ministries, recently issued the Notice on the 2026 Large-scale Equipment Renewal and Consumer Goods Trade-in Subsidy Policy, continuing incentives for autos, home appliances and digital products, with targeted optimizations to enhance policy efficiency, BOCI released a research report saying.

With the early implementation of subsidy details and timely disbursement of funds, the auto sector is expected to get off to a good start in 2026.

However, given the high channel inventory at year-end due to consumer wait-and-see sentiment in 4Q25, 1Q26 may enter a destocking phase.

Among individual stocks, the broker believed that LI AUTO-W (02015.HK), XIAOMI-W (01810.HK), NIO-SW (09866.HK) (NIO.US), AITO and Zeekr brand will be least impacted by adjustments to the trade-in subsidy policy, while BYD COMPANY (01211.HK), LEAPMOTOR (09863.HK), CHERY AUTO (09973.HK) and GEELY AUTO (00175.HK) will face subsidy scale-down impacts due to their lower car pricing.
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AASTOCKS Financial News
Website: www.aastocks.com