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The policy concerning the exemption of purchase tax for new energy vehicles will undergo an adjustment, with vehicles enjoying tax exemption until the end of 2024, transitioning to a 50% tax reduction from 2026 to 2027, capped at a maximum tax exemption of 30,000 yuan per vehicle. Concurrently, trade-in subsidies are being gradually distributed, benefitting original equipment manufacturers (OEMs) during the new car cycle and high-end brands. Furthermore, the imminent implementation of the national standard for L2 intelligent driving systems is set to reinforce the industry's momentum. The recovery of domestic demand and the export growth of commercial vehicles have propelled the performance of leading companies to surpass expectations, making their undervalued attributes attractive to investors.
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