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Research evidence excerpt

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Asia Pacific Equity Research AC Asia Pacific Equity Research

30 July 2026 J P M O R G A N

aprr.publications@jpmorgan.com

the current book value of the asset. Our FY26 forecast already conservatively models in Rmb15bn

impairment for FY26, in line with the historical trend (Figure 4).

China Auto Export Tracker (Nick Lai)

June: Chinese brands reach 20% NEV share in Europe despite muted domestic sentiment

China auto stocks have rebounded by ~4–30% in July so far (vs MXCN +8%), following the sharp sector

correction of -19% (vs MXCN -8%) in June. We believe the recent recovery has likely been driven by sector

rotation out of technology stocks, together with investor expectations for a sequential improvement in

domestic retail sales in 2H26 following a weak 1H26. We remain selective, favoring OEMs with resilient

domestic and overseas market-share momentum, improving global competitiveness, and company-specific

earnings or product catalysts. Our June China Auto Export Tracker continues to monitor what we view as a

structural overseas expansion cycle for the sector. This monthly series provides timely updates on: 1) latest

export dynamics, including growth momentum, geographical mix and the evolving regional strategies of

major exporters; 2) powertrain trends, particularly the rising role of PHEVs, which we believe could surprise

overseas investors as adoption follows a similar path to China; and 3) Chinese OEMs’ NEV market share in

Europe, where consecutive monthly gains are providing increasing evidence of their improving global

competitiveness. Following our selective buy-the-dip call on July 9 (JPM note) and 2Q26 preview on July 13

(JPM note), we continue to see attractive opportunities among selected OEMs, particularly those with