UBS Paul Gong on China's EV Auto Sector

The video discusses the current state of the auto industry in China, focusing on supply chain disruptions and demand bottlenecks. It highlights the challenges of rising inventories and competition, particularly in the electric vehicle (EV) market. The discussion includes historical context, the impact of power shortages, and the role of tax incentives in shaping market dynamics. The video concludes with an analysis of the competitive landscape, noting the dominance of local players in the Chinese EV market.

What is the current bottleneck in China's auto industry according to the transcript?

• Logistics bottleneck

• Demand-side bottleneck

• Production bottleneck

• Supply-side bottleneck

What is causing the sequential decline in pricing in the automotive industry?

• Rising inventories and competition

• Increased demand

• Government regulations

• Decreased production costs

How does the current inventory level compare to historical levels?

• It is lower than usual

• It is about the same

• It is higher than usual

• It is not mentioned

What is the expected impact of the power shortages in Sichuan on the supply chain?

• Increased production

• No impact

• Short-term disruptions

• Long-term disruptions

Which policy is expected to continue into 2023?

• All of the above

• EV subsidies

• Tax cut on ICE cars

• Exemption of purchase tax on EVs

What is the market share of local players in China's EV market?

• Less than 50%

• About 60%

• More than 80%

• Exactly 70%

Which group has not shown strong competitiveness in China's EV market?

• Local startups

• Traditional carmakers

• Foreign carmakers

• Tech giants