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UBS: Beijing Auto Show Highlights Acute Domestic EV Competition; Demand Recovery May Be Faster Than Expected
2026-04-24 15:50:30 Gong Min, head of China's automobile industry research at UBS Investment Bank, said that more than 100 models are expected to be launched at the 2026 Beijing International Automotive Exhibition, a scale similar to recent auto shows. Notably, most of the models will come from Chinese OEMs, with EVs accounting for the majority. While this could galvanize customer interest, boost investor sentiment and reinforce analysts model cycle narrative, Gong believed the costs associated with new model development, testing, tooling and marketing should not be overlooked. Structurally, it underscores the acute competition in the domestic EV market, which at times may even resemble a zero-sum environment. Gong added that from a TCO perspective, current oil price volatility has made EVs a more appealing option. If cost pass-through from commodities leads to inflation expectations for certain vehicle prices, demand recovery may come faster than investors anticipate, making the sector worth revisiting. ~ AASTOCKS Financial News Website: www.aastocks.com | |