CICC: Mainland China's July car sales performance varies, Li Auto's monthly delivery volume hits a historical high

CICC International released a report stating that based on the sales data of some car companies in July that have been publicly disclosed, the sales performance of car companies varied. Among them, sales of 10 car companies increased by 27.3% year-on-year, while month-on-month sales remained largely stable. In July, the market's effect of trading price for volume weakened, and some car companies entered the new car release period in the second half of the year, resulting in a relatively flat car market.

Li Auto's delivery volume increased by 6.8% month-on-month to 51,000 vehicles, reaching a historical high in monthly deliveries. NIO delivered 20,000 vehicles this month, consistent with the bank's previous report predicting that NIO would maintain monthly sales of around 20,000 vehicles through promotions before the delivery of the ET7. BYD is the industry's top choice, rated as "buy", with the expectation that the delivery of vehicles equipped with the new DM5.0 technology model will drive BYD's sales growth by about 20% beyond market expectations this year. The sales growth brought by new models in the second half of the year may stimulate the stock prices of new forces, supporting the valuation recovery of Li Auto and NIO, both rated as "buy"