0853 GMT - Retail sales volume of Chinese automobiles is expected to drop by 5% in 2025 compared to the previous year, according to Bernstein analysts in a note. They attribute this to demand being brought forward by China's revamped trade-in policy and local government subsidies. China faces a challenging macroeconomic outlook and weak consumer confidence, the analysts also note, adding that exports of Chinese cars, however, are expected to remain a growth driver. With relatively lean inventory levels, industry wholesale volumes may grow by 1%, reaching around 27.5 million units this year, Bernstein adds. The brokerage maintains a cautious outlook on China's auto sector and names BYD and Li Auto as their most preferred within the sector, with outperform ratings. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
February 19, 2025 03:53 ET (08:53 GMT)
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