At the end of the year, auto market or blowout auto stocks enter the “fast track” in short term

The underperformed automobile sector rebounded with the broader market yesterday, removing only a few stocks that were suspended and closed, and the stocks in the sector were almost all over the board.

What is different from usual is that almost all of the top gainers are OEMs. In the past, active parts manufacturers were relatively flat. Some researchers have indicated that one of the heroes that has contributed to a record number of car sales in China in 2009 will soon expire at the end of the year, which will stimulate the continued burgeoning auto market in various cities in the country.

Auto stocks now have the "last policy" effect

On December 13, the automotive sector was beaming and the stocks in the sector rose almost completely across the board. Apart from Hua Yu Automobile, which had a daily limit on the acquisition of parts and components of Shanghai Automotive Group Corporation, the overall performance of passenger vehicles in the current day segment was excellent. For example, Shanghai Automotive's gains approached 9%, Jianghuai Automobiles and FAW Cars all increased by more than 5%, FAW. Xiali and Changan Automobile are nearly 5%.

This is a rare collective rise in passenger cars in the most recent month. According to Wind information, the passenger car segment fell by 18.2% in the one-month period from November 11 to December 10, which exceeded the 12.2% for trucks, 8.7% for passenger cars, and 16.3% for the entire automobile segment.

The reason for the strong market response is that the purchase tax for passenger cars will soon expire. Starting from March 2009, China has introduced a series of policies to encourage automobile consumption, including halving the purchase tax for passenger vehicles with small displacements of 1.6L and below; 2.5% is levied, and December 31, 2010 is the last day to enjoy this preferential policy.

According to the current plan for the purchase tax of 1.6L and the following models to be levied at 7.5%, a small-displacement vehicle with a price of less than 100,000 yuan will save about 2,000 yuan for only the purchase tax portion. The sales of passenger cars in the auto market have been hot recently. Statistics from the China Association of Automobile Manufacturers show that in November China's auto sales climbed to the second highest in the year after March, with passenger car sales hitting a record high of 1.34 million, while small displacements of 1.6L and below The proportion of passenger vehicles in the total sales volume of passenger vehicles exceeds 70% and has risen for the fourth consecutive month.

Short-term focus on passenger car stocks

Earlier this month, the relevant person in charge of the Department of Industrial Coordination of the National Development and Reform Commission made it clear earlier that the purchase tax preference for small-displacement passenger cars will be officially cancelled from next year. At present, the policy of the relevant industries is not only limited to the purchase tax. Xiangcai Securities analysts said that the car to the countryside and the old-for-new policy also have some expectations of withdrawal. Earlier news that the 3,000 yuan subsidy below the 1.6L energy-saving models will also be discontinued at the end of this year, but the three ministries and commissions of the Development and Reform Commission, the Ministry of Industry and the Ministry of Finance jointly announced the fourth batch of energy-saving vehicle promotion catalogs earlier this month, showing this subsidy policy. It will not be cancelled at this time.

Xiangcai Securities predicts that from the industry and passenger vehicle data in November, the cancellation of preferential policies will stimulate consumers to concentrate on completing the purchase by the end of this year. In accordance with industry traditions, each year before and after the Spring Festival is the sales season, the "last policy" effect stimulates the arrival of the peak season in 2011. It is expected that vehicle sales in December this year are expected to exceed the record in March this year, reaching 1.8 million, which will stimulate the short-term strength of auto stocks, the most benefit will be passenger car stocks.

However, the industry situation after entering the next year is not optimistic about the industry. Northeast Securities analyst Liu Lixi believes that the cancellation of preferential policies and the introduction of the Beijing blockage plan will have a negative impact on car sales in the first quarter of next year.