Four consecutive rises! The automobile sector fluctuates and strengthens, with BYD rising more than 2% and its share price hitting a record high! [Hot Stock]

SMM News on May 21: In recent trading days, the automotive sector has seen consecutive gains, achieving four straight days of increases as of May 21. By the close of trading on May 21, the automotive sector index rose by 1.06%. Among individual stocks, JAC surged by over 8%, JMC rose by over 6%, while multiple stocks including King Long United Automotive Industry, Seres, and Hanma Technology followed suit with gains.

On the news front,Recently, the Central Committee of the Communist Party of China and the State Council issued the revised "Regulations on Practicing Frugality and Combating Waste in Party and Government Offices," which stipulates centralized procurement of official vehicles, requiring all regions and departments to strictly comply. In this revised version, the management of official vehicles has become a major highlight, explicitly stating that official vehicles should be procured centrally by the government, with a preference for domestically produced vehicles, and priority given to new energy vehicles (NEVs). This move aims to further promote frugality and combat waste in Party and government offices, while also facilitating the green development of the domestic automotive industry.

In recent years, the state has also introduced multiple policies to support the development of NEVs, with the promotion of NEVs frequently appearing in the field of official vehicles. Meanwhile, local governments have been continuously issuing relevant supportive policies. According to publicly available information, previously, regions including Shandong and Hainan have required achieving 100% electrification of official vehicles by 2025 (except for special purposes). The General Office of the People's Government of Guangdong Province has also mentioned that the proportion of pure electric vehicles (EVs) in the total number of vehicles equipped and updated in the same year for Party and government offices and public institutions at the provincial level and in the Pearl River Delta region should be no less than 95%. Other cities should refer to the promotion targets of the Pearl River Delta region and determine their own promotion targets based on local conditions. State-owned enterprises should refer to the aforementioned requirements to purchase and use NEVs, and take measures such as building, renovating, or leasing charging and battery swapping facilities to encourage employees to purchase and use NEVs. Shanghai also issued a policy in 2024 stating that by 2027, the proportion of green transportation trips in the central urban area should exceed 75%. Accelerate the comprehensive electrification of vehicles in urban public sectors, with buses and taxis basically achieving electrification by 2025. In principle, new or updated vehicles in public sectors such as Party and government offices, state-owned enterprises and institutions, environmental sanitation, and postal services should use NEVs. Encourage the use of NEVs for new or updated vehicles in urban freight trucks, rental cars, and intra-city charter buses with suitable models.

Promoting the electrification of official vehicles can, on the one hand, enhance public acceptance of NEVs through government demonstration, thereby indirectly stimulating the civilian market. On the other hand, it can also significantly reduce operating costs. It is reported that the annual operating cost of new energy official vehicles in Chengdu is approximately 25,000 yuan less per vehicle compared to internal combustion engine vehicles. The market expects that with the continuous deepening of subsequent local policies, there is still greater room for growth in the application of NEVs in the official vehicle market.

In addition, Li Chao, Deputy Director of the Policy Research Office and spokesperson of the National Development and Reform Commission (NDRC), stated that in April, retail sales of passenger NEVs reached 905,000 units, up 33.9% YoY; the retail penetration rate of NEVs reached 51.5%, a 7 percentage point increase YoY.

Regarding the recent automotive market, according to the China Passenger Car Association (CPCA), from May 1 to 18, nationwide retail sales of passenger NEVs reached 484,000 units, up 32% YoY and 15% MoM; the retail penetration rate of the nationwide NEV market was 52%, with cumulative retail sales of 3.808 million units since the beginning of the year, up 35% YoY. From May 1 to 18, nationwide wholesale sales of passenger NEVs by producers reached 467,000 units, up 23% YoY and 0% MoM; the wholesale penetration rate of NEV producers was 54.4%, with cumulative wholesale sales of 4.448 million units since the beginning of the year, up 40% YoY.

On May 21, according to the latest statistics from TrendForce, global sales of new energy vehicles, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell vehicles, reached 4.02 million units in the first quarter of 2025, up 39% YoY, accounting for 18.4% of global auto sales in the first quarter.

In terms of individual stocks, although BYD, the leader in the EV sector, did not see a significant increase in its share price today, its share price reached a record high, surging to 404 yuan per share at one point during the trading session, marking a new all-time high since its listing.

It is also worth mentioning that, according to media reports, in the recently released Q1 2025 earnings reports of A-share vehicle manufacturers, BYD ranked first with a net profit exceeding 9.1 billion yuan. According to Q1 financial data, BYD's net profit in the first quarter increased by 100.38% YoY. The rapid growth in sales of its NEVs was the main reason for its outstanding performance in the first quarter. It is reported that BYD's cumulative NEV sales in the first quarter reached 1.0008 million units, up 59.81% YoY.