Dim Sum Express

Auto: June data review; PV industry recovering, HDT continues to beat expectations

    Overall auto sales volume grew 4.9% YoY in June, with PVs up 3.5% and CVs up 18.7%. SUVs wasthe only PV category that saw positive sales growth during the month; mid/heavy duty trucks showedstrength on pro-growth policies and low inventories and will likely continue to beat expectations. Webelieve the auto sector is likely to maintain strong business conditions given steady economic growthand increased PV demand in central and western China. Leading traditional cyclical auto names arelikely to see strength in both sales volume and profitability as a result.