Assessing geopolitical risk impact on auto outlook
- Conflict region accounted for c.6% of Chinese vehicle production in 2021
- Vehicle sales to Russia and Ukraine insignificant to individual Chinese OEMs, but global OEMs expected to face larger challenges
- Commodity price pressure could potentially shave 1-2ppts off product margins
- BYD (1211 HK) remains our preferred pick; expect GWM’s (2333 HK) share price to be lacklustre in the near-term