(Bloomberg) -- Chinese electric vehicle stocks jumped after automakers including BYD Co. posted record deliveries in October, as government subsidies give a widespread lift to the sector.
BYD’s shares rose as much as 5.6% in the morning trading session in Hong Kong Monday, after the company delivered a record half a million plug-in electric and hybrid vehicles last month. Peers including Xpeng Inc and Geely Automobile Holdings Ltd also gained over 6% following strong delivery growth in October.
The results showed the impact of a series of national and local subsidies in China, designed to encourage drivers to trade-in gas cars for plug-in vehicles. The incentives contributed to seven consecutive months of sales growth among plug-in vehicles, while gasoline cars purchases continue to erode.
“Owing to the approaching year-end and stimulated by the trade-in subsidy policy, EV makers experienced further growth after posting strong September sales,” wrote Nomura analyst Joel Ying in a note. “Quite a few active players have continued to break their record-high monthly deliveries, which we note was only recently set in the previous months.”
©2024 Bloomberg L.P.