At press time, NIO is up 11 percent in Hong Kong, XPeng is up about 7 percent and Li Auto is up about 6 percent.

EV stocks stage strong rally in Hong Kong, NIO up 11%-CnEVPost

Stocks of major electric vehicle (EV) makers traded in Hong Kong rallied strongly in early trading today, after a top Chinese government meeting confirmed last week that the new energy vehicle (NEV) tax exemption will be extended next year and as July delivery figures are due later today.

NIO was up 11 percent to HK$166.20 in Hong Kong at press time, after the stock fell about 7 percent last week.

XPeng is up about 7 percent after it fell about 11 percent last week. Li Auto is up about 6 percent after it also fell about 11 percent last week.

BYD rose 3.85 percent and Geely Auto gained 10.58 percent in Hong Kong. The latter's premium EV subsidiary Zeekr delivered 5,022 units in July, up 16.74 percent from 4,302 units in June, data released earlier today showed.

Hong Kong markets were generally weak in early trading, with the Hang Seng Index largely flat and the Hang Seng Tech Index up 0.56 percent.

A latest top government meeting last week confirmed that China's policy of exempting new energy vehicles from purchase taxes will be renewed next year to continue supporting the industry's growth.

To support the development of fuel-efficient vehicles, China first began exempting NEVs from purchase taxes in 2014, allowing most consumers who buy such vehicles to save about 10,000 yuan ($1,580) relative to those who buy traditional fuel vehicles.

Vehicles eligible for the policy include pure electric vehicles, plug-in hybrids, and fuel cell vehicles.

The policy originally expired at the end of 2017, but was extended to the end of 2020 before it expired, and in March 2020, China extended the policy again to the end of 2022.

In company-specific news, 36kr reported today that NIO is planning to launch a third EV brand to cover the RMB 100,000 ($14,820)-200,000 low- to mid-range market, In addition to the NIO brand and the sub-brand codenamed ALPS.

The NIO brand won't launch a less expensive model than the ET5 or a production two-door sports car, but it will launch a model "with character" next year, the company's founder, chairman and CEO William Li said over the weekend.

NIO held NIO Partner Day 2022 on July 30, and Li said the NIO ET7, as well as some other models, hit a bottleneck in capacity for parts in casting in July.

Li Auto today updated Li L9 reservation owners on expected delivery dates for the new SUV, which will begin as soon as this month, according to a screenshot of the order shared by some Weibo users today.

Li Auto officially unveiled the Li L9 on June 21, the company's second model after the Li ONE SUV, which follows the extended-range technology of its predecessor.

On June 4, Li Auto founder, chairman and CEO Li Xiang said on Weibo that the model will be officially delivered to customers in August and deliveries could exceed 10,000 in September.

There has been no news about XPeng in recent days, though rumors about the company's price cuts in offline stores sparked wide discussions last week.

NIO, XPeng and Li Auto are all expected to announce their July delivery figures later today, having delivered 12,961, 15,295 and 13,024 units respectively in June.

China to extend purchase tax exemption for NEVs, says top govt meeting

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