Mainland China's Auto OEM Sales Continue Recovery in June; BYD and Geely Gain Favor Amid Overseas Expansion and Tech Edge

Mainland China's major automotive OEMs saw their sales continue to recover in June, rising 5% month-over-month, driven by stronger exports, improving domestic demand, and a robust product cycle in the second quarter. The industry showed signs of divergence, with export growth outpacing the domestic recovery—some OEMs posted positive sequential export growth even as their domestic sales declined. Despite rising cost inflation pressures in Q2, BYD and Geely Auto are seen as well-positioned to mitigate margin pressure thanks to their expanding overseas presence, technological advantages, and premium product strategies.