On July 25, 2026, Hong Kong major indexes showed divergence, with the Hang Seng Index edging down 0.2%, but the new energy vehicle sector bucked the trend and strengthened, becoming a market highlight. At close, BYD (01211.HK) rose 4.8% to HK$328; XPeng (09868.HK) rose 6.2%, NIO (09866.HK) rose 3.5%, Li Auto (02015.HK) rose 2.9%. The sector overall gained over 3%, leading all Hong Kong industries.
Market participants pointed out that the rise of NEV stocks was mainly driven by multiple favorable factors. First, China's Ministry of Finance and Ministry of Industry and Information Technology recently jointly issued a notice clarifying that the NEV purchase tax exemption policy will continue from 2026 to 2027, with both pure electric and plug-in hybrid vehicles exempted from purchase tax, directly benefiting end consumption. Second, data from China Association of Automobile Manufacturers showed that domestic NEV sales in June reached 986,000 units, up 42% year-on-year and 18% month-on-month, hitting a historical high for the same period, with cumulative first-half sales exceeding 5.2 million units and market penetration rising to 35%. Third, many automakers achieved breakthroughs in overseas markets: BYD's orders in Europe and Southeast Asia continued to increase, and XPeng's first month deliveries exceeded expectations after entering the German market.
Policy Continuously Intensified: Purchase Tax Exemption Extended to 2027
According to the latest policy, NEVs purchased from January 1, 2026 to December 31, 2027 will continue to be exempted from vehicle purchase tax. The stability of this policy provides clear expectations for automakers and consumers. Compared with the previous market worry about phase-out, the extension period exceeded expectations, boosting industry confidence. A relevant official from the Tax Policy Department of the Ministry of Finance stated that the NEV industry is still in a growth period and needs sustained policy support to consolidate development momentum. In addition, local governments are increasing subsidies for charging infrastructure construction, with Shenzhen, Guangzhou, Shanghai and other places planning to add over 500,000 charging piles in the next two years.
Sales Data Exceed Expectations: June Hit Historic High
Data released by China Association of Automobile Manufacturers on July 20 showed that in June, NEV production and sales completed 992,000 units and 986,000 units respectively, up 40% and 42% year-on-year, maintaining month-on-month growth for three consecutive months. Among them, pure electric vehicle sales were 734,000 units, up 38% year-on-year; plug-in hybrid vehicle sales were 252,000 units, up 55% year-on-year. Cui Dongshu, Secretary General of the Passenger Car Association, said that first-half NEV sales reached 5.22 million units, and the full year is expected to exceed 11 million units, with penetration exceeding 40%. Among leading automakers, BYD sold 340,000 units in June, up 35% year-on-year; XPeng delivered 19,000 units, up 68%; NIO delivered 16,000 units, up 45%; Li Auto delivered 25,000 units, up 32%.
Overseas Market Accelerates: Chinese Automakers' Globalization Pays Off
Overseas markets have become an important growth pole for Hong Kong-listed NEV stocks. On July 22, BYD announced that its first European passenger car factory in Szeged, Hungary officially began production, with an annual design capacity of 150,000 vehicles, its first model being the Yuan Plus (overseas name ATTO 3), targeting the European market. At the same time, BYD's factories in Thailand and Brazil are under construction, and it is expected that global total production capacity will exceed 8 million vehicles by 2028. On July 15, XPeng announced that its first month deliveries in the German market exceeded 500 units, exceeding expectations, and plans to enter the French and UK markets by the end of 2026. NIO has built over 20 battery swap stations in Norway and Sweden with high user satisfaction. CITIC Securities research report pointed out that Chinese automakers' overseas sales are expected to reach 3 million units in 2026, of which NEVs will account for over 60%, and the gross profit margin in overseas markets is generally higher than in China, making a significant contribution to profitability.
Industry Outlook: Second Half of Competition in Intelligence Begins
In addition to sales and policy positives, breakthroughs in intelligent driving technology have also become a market focus. BYD recently released its Eye of God high-level intelligent driving system, which will be installed across all models in 2026, enabling urban NOA (Navigation on Autopilot) functions. XPeng announced that its XNGP (Smart Navigation Assisted Driving) has covered more than 300 cities nationwide, with cumulative mileage exceeding 100 million kilometers. Huatai Securities analysts said that competition in the NEV industry has shifted from electrification to intelligence, and companies with full-stack self-developed capabilities will receive higher valuation premiums. In Hong Kong stocks, BYD, XPeng and other targets benefit from China's huge domestic market and overseas expansion, with considerable long-term growth space.
However, investors should also note risks. Some automakers are still in loss stages, intensified competition may lead to sustained price wars, and global economic uncertainty, geopolitical risks and raw material price fluctuations may also affect sector performance. Overall, with the triple support of policy, sales and overseas expansion, the Hong Kong NEV sector still has medium-term investment value.
