China Auto Manufacturers: Mr. Sun‘s Update on May/June Order & Competitive Dynamics

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China Auto Manufacturers: Mr. Sun‘s Update on May/June Order & Competitive Dynamics

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16 Jun 2026 03:21:07 ET │ 10 pages

China Auto Manufacturers

Mr. Sun’s Update on May/Jun Order & Competitive Dynamics

CITI'S TAKE

Jeff Chung AC

We hosted an industry expert call with auto journalist Mr. Sun Shaojun 孙少军 +852-2501-2787

on 16-June. Key takeaways include: (1) May/June market overview: Mr. Sun jeff.m.chung@citi.com

indicated overall PV sales in May were a miss. ICE sales collapsed while NEV

was flattish MoM — The ICE sales plunge didn’t benefit NEV due to muted Kyle Wu

customer purchase. Into June, the market is sustaining its tepid trend with +852-2501-8483

market divergence — below Rmb200k NEV segment remains resilient while kyle.wu@citi.com

the luxury segment (traditional BBA & flagship SUVs of NEV brands) has seen

a sharp order decline. (2) Potential stimulus rollout: Mr. Sun believes if the

market remains sluggish, stimulus policy could be introduced for stabilization.

Historical patterns show auto stimulus typically appears after July; therefore,

Mr. Sun anticipates that the weaker the market performance, the higher the

likelihood of stimulus policy being rolled out after July. (3) Mass-market

BYD/Leapmotor weekly orders remained resilient at ~50k/13k units.

BYD — Last week’s order was at 50k units (including BYD repurchased volume for

overseas sales at <5k units), vs. 52k units two weeks ago. Given the robust overseas

demand, Mr. Sun indicated that BYD has repurchased small battery PHEV models

from dealers for overseas sales. The expert noted models with 2nd-gen blade

batteries have also received decent customer feedback. The monthly production

capacity of the 2nd-gen blade battery is ramping up at 20-30k units each month,

according to BYD. Mr.