Trump's Auto Tariffs Face Another Change! Auto Parts Sector Rises Collectively, Shares Such as Zhaofeng Co., Ltd. Hit Daily Limit During Trading! [[Hot Stocks]]

SMM, April 29: In the early morning of April 29, the auto parts sector surged rapidly, with the index rising by over 2% at one point during the session. In terms of individual stocks, Zhaofeng Co., Ltd. and Jingjin Electric-UW hit the 20CM limit up during the session, while Leidike rose by over 18%. Sanxiang Technology rose by more than 14%, Dishengli and New Coordinate hit the limit up during the session, and Rying Electronics, Ningbo Huaxiang, and De'er Co., Ltd. all rose by more than 7%.

On the news front,according to The Wall Street Journal, informed sources revealed that Trump is expected to take measures to mitigate the impact of his auto tariffs, prevent the tariffs on foreign-made cars from being stacked on top of other tariffs he has already imposed, and relax some tariffs on foreign parts used in the manufacture of cars in the US.This decision would mean that automakers paying Trump's auto tariffs would not be subject to other tariffs such as those on steel and aluminum (as reported by the Financial Times last week). The Trump administration will also revise tariffs on foreign auto parts—originally set to take effect on May 3 at a rate of 25%—allowing automakers to receive tariff compensation equivalent to 3.75% of the value of US-made cars within one year. In the second year, the subsidy will be reduced to 2.75% of the car's value and then gradually phased out.

It is worth mentioning that on April 23, according to Caixin, six major automotive industry organizations representing US car dealers, suppliers, and almost all major automakers jointly sent a rare letter to the US Secretary of the Treasury, Secretary of Commerce, and US Trade Representative, urging the federal government not to impose additional tariffs on imported auto parts. The letter stated that imposing additional tariffs on auto parts would disrupt the global automotive supply chain and trigger a chain reaction, leading to higher car prices, lower sales, and making car after-sales services and repairs more expensive and unpredictable.

The White House confirmed last Wednesday that Trump is considering exempting automakers from some of the harshest tariffs. In addition, media reports indicated that Trump intends to exempt some tariffs on auto parts, including those on imported steel and aluminum products.

Furthermore, recently, the MIIT released the "2025 Automotive Standardization Work Points," which mentioned the need to improve the safety level of NEVs. It aims to promote the release of standards for EV remote services and management and the implementation of power battery safety requirements, advance the review and approval of EV safety requirements, conduct pre-research on mandatory national standards for fuel cell EVs and power battery recycling safety requirements, and continuously enhance EV safety levels.

It will also promote the review and approval of standards for power battery durability and thermal management systems, accelerate the development of standards for all-solid-state batteries, in-service detection of power batteries, and power battery labeling, and continuously optimize power battery performance requirements. It will speed up the formulation of standards for the efficiency test methods of drive motor systems, conduct pre-research on standards for distributed drive motor systems, hybrid systems, and onboard hydrogen systems, and strengthen the quality requirements of key system components. It will promote the release and implementation of safety requirements for commercial vehicle battery swapping, accelerate the formulation of standards for charging performance, chassis battery swapping, and battery swapping compatibility testing, conduct pre-research on megawatt-level charging standards for commercial vehicles, and enhance the convenience of EV use.Click for details

It is also worth noting that recently, many A-share auto parts companies have begun to intensively release their 2024 annual and 2025 Q1 financial reports. According to relevant media statistics, based on the disclosed data, over 180 A-share auto parts companies saw more than 60% of them achieve YoY growth in net profit, with 13 companies achieving more than double growth.

Moreover, since the beginning of 2025, the humanoid robot concept has been hot, directly benefiting auto parts producers, which has become the industry's "second growth curve." Some brokerages stated that humanoid robots and smart cars share many commonalities in software and hardware, with automakers joining the robot race and auto parts companies increasing their robot layout. Core components of humanoid robots such as lead screws, motors, reducers, sensors, and skeletons are widely used in vehicles, making humanoid robots the "second curve" of auto parts. In the short term, the "second curve" may catalyze the valuation of the industry chain, and humanoid robots are expected to break the ceiling of auto parts.

De'er Co., Ltd. recently released its 2025 Q1 performance report. According to the announcement, the company achieved revenue of 1.22 billion yuan in Q1, up 15.13% YoY, and net profit attributable to shareholders of the publicly listed firm was 22.74 million yuan, up 276% YoY. Regarding the reasons for the company's performance growth, De'er Co., Ltd. stated that the results of cost reduction and efficiency improvement have further emerged, and the main business of auto parts has continued to improve, driving the company's performance to recover continuously. In 2025, with the acceleration of the industrialization of solid-state batteries, De'er Co., Ltd.'s dual-drive development model of "auto parts + solid-state battery" is expected to enter the harvest period.

Shuanglin Co., Ltd. also previously released Q1 financial data, stating that the company achieved revenue of 1.29 billion yuan in Q1, up 21.0% YoY; net profit attributable to shareholders of the publicly listed firm reached 1.59%, up 105.5% YoY. Shuanglin Co., Ltd. stated that during the reporting period, the company focused on the production and sales of auto parts, committed to providing customers with high-grade auto parts solutions. The report showed that the company continued to develop in multiple business areas, especially in investments in productive biological assets and construction in progress, indicating that the company is expanding its production capacity and market share.

Changjiang Securities stated that some parts may have been under pressure in Q1 due to Tesla's sales decline, but with the launch of new cars in Q2, performance is expected to rebound, and global parts are expected to see a recovery.