HAITONG INT'L: Mainland China's new energy vehicle market cools down in November, car manufacturers facing a challenge to balance sales and profits in year-end sprint.

Haitong International released a research report stating that major automobile companies in mainland China have successively disclosed their November sales figures. The differentiation in the year-end sprint stage has further intensified, and the end-of-year effect is noticeably weaker than in previous years. As the subsidies for the "two news" (large-scale equipment updates and consumer goods for old ones) policy are basically phased out, the trend of slowing sales growth or even decline may be difficult to reverse. The report pointed out that the sales performance in November was cold, and there was a reshuffle in sales rankings. Geely Auto's November sales were 310,000 units, a year-on-year increase of 24% and a month-on-month increase of 1%. The cumulative sales in the first eleven months were 2.79 million units, a year-on-year increase of 42%, and the annual sales target of 3 million units is within reach. New energy vehicle sales in November were 188,000 units, a year-on-year increase of 53%, a month-on-month increase of 6%, with a penetration rate exceeding 60%, making it the main force in sales. The Galaxy brand contributed significantly to the increase in new energy vehicles, with November sales of 133,000 units, a year-on-year increase of 76%, and cumulative sales in the first eleven months of 1.135 million units, a year-on-year increase of 167%, leading the trend of Geely's new energy vehicles towards the mid-to-high-end market. Lynk & Co sold 35,000 units in November, a year-on-year increase of 7%; Jili delivered 29,000 units in November, a year-on-year increase of 7%; and exports reached 42,000 units, a year-on-year increase of 22% in November. The growth rate of sales of leading new forces in the industry has slowed down, and the overall industry pattern for the year has basically been determined. LEAPMOTOR delivered over 70,000 units in November, a year-on-year increase of 75%, maintaining the same level month-on-month, and exceeded 700,000 units for two consecutive months. The cumulative delivery in the first eleven months was 536,000 units, a year-on-year increase of 113%, achieving the annual target of 500,000 units ahead of schedule. The B and C series deliveries supported by the LEAP 3.5 platform continued to increase, and the Zero Run A10 made its debut at the Guangzhou International Auto Show in November, completing the last piece of the Zero Run ABCD product matrix; Lafa 5 was launched at the end of the month, with a starting price of 92,800 RMB, showing strong competitive advantages. Hongmeng Zhixing delivered 82,000 units in November, a year-on-year increase of 90% and a month-on-month increase of 20%; among them, Chongqing Sokon Industry Group's M7 and M9 Ultra continued to be in short supply, and Chery Auto's Zhi Realm delivered over 10,000 units in November, breaking the 10,000 mark for two consecutive months. The "Five Realms" product matrix is now complete, and its performance next year is worth looking forward to. Haitong International pointed out that Xiaomi delivered over 40,000 units in November for the third consecutive month, with the company stating at the monthly performance meeting that it expects to achieve its annual target of 350,000 units ahead of schedule in the third week, and has raised its annual delivery expectation to over 400,000 units. LI AUTO-W delivered 33,000 units in November, a year-on-year decrease of 32%, a month-on-month increase of 4%, and a cumulative delivery of 362,000 units in the first eleven months, a year-on-year decrease of 18%; the fourth quarter is still affected by the supplier switch for the i6 battery and the MEGA recall, coupled with the entry of long-range vehicle models into the aging phase, intensifying competition in the high-end market, with limited potential for surprises in December deliveries. In comparison, XPENG-W delivered 37,000 units in November, a year-on-year increase of 19% and a month-on-month decrease of 13%; the cumulative delivery in the first eleven months was 392,000 units, a year-on-year increase of 156%, with uncertainties remaining as to whether it can reach the milestone of 450,000 units for the whole year. NIO-SW delivered 36,000 units in November, a year-on-year increase of 76% and a month-on-month decrease of 10%, mainly due to the weakening delivery of the Le Tao. The cumulative delivery in the first eleven months was only 278,000 units, and according to the fourth quarter guidance, 43,000 to 48,000 units must be delivered in December. With the further acceleration of the production and delivery pace of ES8, the visibility of achieving profitability in the fourth quarter remains low. Against the backdrop of continued industry "anti-inner loop" regulation and the phased-out subsidies, the likelihood of a significant rewrite of the December auto market structure is limited, putting more pressure on car companies to balance between sales and profitability in the year-end sprint.