On June 18, the Shanghai Composite Index closed at 2159.29 points, closing at 0.14%. Although the automobile segment began to adjust before the Dragon Boat Festival, on June 18, the car was relatively strong, and the vehicle segment rose by 1.27%.

The overall automotive sector is still in adjustment. From June 3 to June 17, the stocks of the auto vehicle segment showed a downward trend. Yueda Investment had the biggest drop, which was 30.79%. JAC Motors (the stock market) saw a decrease of 15.39%. FAW Xiali (000927, stocks), China National Heavy Duty Truck (000951, stocks), Zhongtong Bus (000957, stocks), etc. The decline in stocks is also above 10%.

Regarding the correction of the auto sector since June, an auto industry analyst from Beijing brokerage firm stated that it is a normal adjustment. "There has been a good increase in the previous period, and the car is now selling off-season."

Under the concept of TLAs, domestic new energy vehicles were once again stirred up by the capital market. In addition, car sales data for the first five months of 2013 showed a positive trend, and the automotive sector had performance support.

As for the investment opportunities in the automotive sector, the views of the organization remain divergent. CITIC Securities (600030, stocks) is very optimistic about the investment opportunities in the auto sector. CITIC Securities believes that investment opportunities in the automotive industry throughout 2013, the peak season demand and interim report performance is expected to become a catalyst for the upward movement of the stock price, and adjustments will create buying opportunities.

The above analysts are relatively cautious. The analyst said that the adjustment may continue until the end of the third quarter, even if the rebound will be lower than the increase in the auto sector since the end of April.

Car plate entering the adjustment period

After more than a month of speculative feast, the automobile sector began to adjust from June. From June 3 to June 17, the stocks of the auto vehicle segment showed a downward trend. Yueda Investment had the largest decline, which was 30.79%. Jianghuai Automobile had a decrease of 15.39%. The stocks of FAW Xiali, CNHTC, and Zhongtong Bus also fell by more than 10%.

Prior to this, in the period from May 2 to May 30, the stocks in the auto sector were relatively strong. GAC Group's gains reached 74.35%, and BYD's rose by 49.70%. Jinlong Motors (600686, stocks), Haima Motors (000572, stocks) and FAW Car (000,800, stocks) also rose more than 30%, respectively, 39.49%, 39.23% and 30.10%.

As for the reasons for the rise, the market generally believes that the automotive sector's performance is good and that Torsional Catasla's catalysis causes the capital to be eager to hype this sector.

According to data from the China Automobile Association, in May 2013, domestic auto production was 1,780,500, down 6.27% month-on-month and 13.52% year-on-year; sales were 1,761,500, a month-on-month decrease of 4.36%, and a year-on-year increase of 9.81%. The production of passenger cars was 1,141,700 units, a decrease of 5.26% from the previous period and an increase of 11.89% year-on-year. Sales of 1,396,900 units were down by 3.09% month-on-month and an increase of 9.04% year-on-year. The production of commercial vehicles was 368,800 units, a year-on-year decrease of 10.03% and an increase of 20.39% year-on-year; sales of 364,600 units was down 8.94% month-on-month and 12.88% year-on-year.

At the same time, the overall data from January to May showed that the production and sales of automobiles reached 9,077,200 and 9,027,100, an increase of 13.49% and 12.56% respectively. Sales and sales of passenger cars were 7,301,600 and 7,261,600, representing year-on-year increase of 15.16% and 14.73% respectively. The increase rate was slower than that of the previous April. Commercial vehicle production and sales were 1,775,600 and 1,766,500, an increase of 7.12% and 4.45% year-on-year. The increase continued to rise steadily from the previous April.

"The demand was relatively poor last year and the demand is better this year," said the analyst. At the same time, according to the China Automobile Association, it is expected that automobile production and sales will return to more than 10% growth in the first half of this year.

The first quarter results of the automotive sector also live up to expectations. The data shows that BYD's net profit attributable to shareholders of listed companies increased by 315.63% year-on-year, and Changan Automobile (000625, stocks) also reached 274.78%. The net profit attributable to shareholders of listed companies of Jianghuai Automobile also increased by 93.07%.

In the case of good performance, the invasion of the concept of Tras also caused the car sector to be scrambled for funds, especially the new energy concept stocks.

Ten years of Tesla Motors was established to exclusively produce pure electric luxury cars. The financial report in the first quarter of this year showed that the company achieved profitability, and in the three-day period announced by the financial report, the stock price rose by more than 50% and exceeded 100 US dollars. This also means that Tesla's share price doubled in 18 months.

In the first quarter of this year, Tras sold 4900 ModelS models, exceeding the target of 4,500 originally planned, and sales revenue of 550 million US dollars, a year-on-year increase of 27 times.

At Tesla's global media conference, George Brackensee, TESLA's sales director, said that the company will open 25 new stores in 2013, including one in China. At the same time, Tesla also established a formal sales company in China and began to work. Under the influence of the "Tlax concept," global stock market turmoil, related stocks have been rising.

However, domestic industry sources believe that the Tesla model is not suitable for the current Chinese new energy automobile market. Its luxury car prices and market prospects, although it can push up the stock price, but it is still difficult to set off a real electric car boom in the actual market.

Adjust or can continue to intervene

For the automotive sector after the adjustment of investment opportunities, the organization's views are not the same.

In early June, brokerage analysts are still optimistic about the car sector. CITIC Securities released a research report saying that investment opportunities in the automotive industry throughout 2013, the peak season demand and interim results are expected to become a catalyst for the upward movement of the stock price, and adjustments will create buying opportunities.

CITIC Securities believes that 2013 is the “big year” for the demand of the automotive industry, and the “young years” of supply, and the business climate and profitability continue to rise. In the past two years, low growth has been depressed, and sales growth is expected to recover double-digit growth in 2013, with PV growth of 15-20%. From the supply side, the new production capacity and the launch speed of new products all slowed down. The industry inventory and price levels will remain stable and profitability will increase. China is still in the period of automobile popularization. In the next 2-3 years, the growth rate of automobile sales is expected to maintain about 8%, and 8-10% of passenger vehicles.

At the same time, CITIC Securities said that the auto plate hotspot will continue in 2013 and adjustments will bring buying opportunities. At the same time, the demand for the peak season and the performance of the mid-term report are expected to be the upward catalyst for the stock price.

CITIC Securities expects that after the automobile sector has been adjusted, the current industry valuation level is at a historically low level, and the leading company’s valuation advantage is even greater. From the third quarter, the industry will gradually enter the peak season of demand, and the sales volume will continue to increase month after month, which will help the market to gradually improve and drive the sector up again.

The above Beijing brokerage analysts are relatively cautious. The analyst said: "The auto industry is closely related to the macro economy, and the rate of its correction must be combined with the macro economy. This is not something to say."

The analyst pointed out that many experts believe that in the second half of the year, the macro economy will be inferior to the first half of the year in terms of data.

China’s broad money supply (M2) increased by 15.8% year-on-year in May, lower than the forecast. At the end of May, the RMB loan balance of China reached 67.22 trillion yuan, a year-on-year increase of 14.5%, which was lower than the estimated 14.8%. In May 2013, the total retail sales of consumer goods reached 1,888.6 billion yuan, a year-on-year increase of 12.9%. In May 2013, the added value of industrial enterprises above designated size increased by 9.2% year-on-year, 0.1 percentage points lower than that in April. From January to May, the industrial added value above designated size increased by 9.4% year-on-year. From January to May 2013, the national investment in fixed assets (excluding rural households) was 1,311.11 billion yuan, a nominal increase of 20.4% over the same period of last year, and the growth rate was down by 0.2 percentage point from January to April. From a month-on-month perspective, fixed asset investment (excluding rural households) increased by 1.43% in May. China's social financing in May was 1.19 trillion yuan, a decrease of 576.3 billion yuan.

The macro data show that investment, import and export have shown a declining trend, credit data is still not available, and although consumption has increased slightly, it is difficult to play a major role in recovery. The urbanization that the market most expects is due to the problems of local government fiscal revenue, and the speed of urbanization may also be lower than expected.

At the same time, the development route of domestic new energy vehicles is not clear. In 2012, China sold a total of 12,791 new energy vehicles, of which 11,375 were pure electric vehicles and 1,416 were hybrid electric vehicles. Due to the higher unit price and the government's failure to issue relevant subsidy policies, hybrid vehicles have shown poor sales in China.

A person in charge of private equity made it clear that the auto sector adjustment is not over, and it has recently been watching.