On October 13, a research report from CITIC Securities highlighted that the Ministry of Finance and the State Taxation Administration released a notice on October 12, 2026, announcing a reduction in the value-added tax (VAT) export rebate rate for new energy vehicles (NEVs) from 13% to 9%, effective April 1, 2027. The market had already factored in this adjustment, and it is anticipated that leading automakers will cushion the profit impact through strategies such as raising end-consumer prices, sharing costs with dealers, or setting up overseas production facilities. CITIC Securities emphasizes that the surge in China's NEV passenger vehicle exports is mainly propelled by the overall superiority attained through the high caliber of the domestic supply chain and the culmination of extensive research and development efforts. In the long run, tax policy modifications are unlikely to undermine the global competitiveness of premium independent automakers, and CITIC Securities maintains a positive outlook on the overseas growth prospects of leading automotive companies.