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<Research>Citi: BYD's Price Cut Raises EV Penetration, Bodes Well for Hesai & HORIZONROBOT-W
Recommend 60 Positive 117 Negative 65 |
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Citi released a report on BYD COMPANY (01211.HK), which announced a fixed price policy for several models on May 23, effective until June 30, 2025. Based on Citi's estimates, the new discounts can reach up to RMB3,000 (approximately 1.5% of the suggested retail price). Citi foresaw competitors to follow BYD's price reduction actions (Changan Automobile announced on May 24 a cash discount of RMB25,000 plus a RMB5,000 trade-in subsidy for Deepal-S07, and LEAPMOTOR (09863.HK) also announced fixed prices for C16/ C11). In Citi's projections: (1) after the price reduction over the weekend (May 24/ 25), BYD dealership store footfall may have spiked by 30-40% compared to the previous weekend; (2) ICE sales penetration rate may tumble by 3Q25; (3) the sales growth driven by BYD and the NEV segment due to price cuts may favor the shipment visibility of Hesai (HSAI.US) and HORIZONROBOT-W (09660.HK) in 3Q25; (4) despite market concerns about BYD competitors' market share being eroded, Citi expected robust sales growth for NEV companies with prices below RMB200,000, as competition remains relatively mild. AASTOCKS Financial News Website: www.aastocks.com |
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