Gong Min, head of China's automobile industry research at UBS Investment Bank, said that more than 100 models are expected to be launched at the 2026 Beijing International Automotive Exhibition, a scale similar to recent auto shows. Notably, most of the models will come from Chinese OEMs, with EVs accounting for the majority.While this could galvanize customer interest, boost investor sentiment and reinforce analysts model cycle narrative, Gong believed the costs associated with new model development, testing, tooling and marketing should not be overlooked. Structurally, it underscores the acute competition in the domestic EV market, which at times may even resemble a zero-sum environment.Related News JPM Expects XIAOMI-W (01810.HK) 1Q26 Adj. Net Profit to Beat; Rating NeutralGong added that from a TCO perspective, current oil price volatility has made EVs a more appealing option. If cost pass-through from commodities leads to inflation expectations for certain vehicle prices, demand recovery may come faster than investors anticipate, making the sector worth revisiting.
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