Updated on 2021-11-01
Sales of new energy vehicles surged 148% in September, data from the China Association of Automobile Manufacturers showed, spurred by Beijing’s promotion of greener vehicles to cut pollution. The better-than-expected figures have offset worries over supply issues, according to Kelvin Lau, an analyst at Daiwa Capital Markets. “Automakers are expecting a stronger fourth quarter and likely to raise their sales guidances,” he said.
Government support is key for the attractiveness of EV names, particularly in the wake of crackdowns on other sectors. “Policy risk is very low compared to other industries like education, internet or property,” said Toliver Ma, analyst at Guotai Junan Securities Co., who added that Chinese companies that have links to Tesla Inc.,which is trading near a record, may get an added boost.