Bank of America reiterates its Buy rating for the Chinese automakers BYD and Geely, which are expected to benefit in the long term from increased local production in Europe.
The EU is considering import quotas for Chinese hybrid cars, which could limit exports in the short term. At the same time, China is expected to cut the VAT rebate on electric vehicle exports from 13 to 9 percent in April 2027.
BofA believes the trade barriers benefit larger manufacturers with the resources to establish local production. Greater clarity around trade policy is also expected to reduce uncertainty in the sector, according to the analysts.
