Understanding the Market | Automotive stocks collectively declined as three departments issued new regulations on the exemption of purchase tax for new energy vehicles, raising the technical threshold for tax exemption

Automobile stocks collectively declined, with XPeng down 4.51%, Li Auto down 2.91%, Brilliance China down 3.12%, and Great Wall Motor down 0.42%. On October 9th, the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation issued new regulations on the purchase tax exemption for new energy vehicles, clarifying the technical standards for the next two years, stating that plug-in hybrid vehicles must have an electric-only range of no less than 100 kilometers. Shenwan Hongyuan pointed out that starting next year, the new energy vehicle purchase tax will be halved, increasing the cost of purchasing vehicles, and the market may see a rush to buy