Lyon: Mainland China's OEM sales continued to recover in June, still considering BYD and Geely Automotive as preferred choices.

According to a report released by Lyon, sales of major car OEMs in mainland China continue to recover in June, mainly supported by export growth, improving domestic demand, and a strong vehicle cycle in the second quarter. The sales of major OEMs in the main markets increased by 5% compared to the previous month, but the gap between domestic and overseas sales widened, indicating industry growth differentiation. The export sales growth rate is faster than domestic recovery, and some OEMs are still experiencing positive export growth despite a decline in domestic sales. Despite cost inflation in the second quarter, the bank still considers BYD and Geely Automobile as preferred choices, as their expanding overseas layout, technological moat, and high-end product strategy should effectively alleviate pressure on gross profit margins.