...Our industry assumption remains unchanged: Light vehicle sales will grow up to 2% and electric passenger vehicles sales will increase 25% in 2023. We expect sequential improvement following the weak sales momentum in the first quarter. What's new? Price competition is likely to persist in the first half, with OEMs destocking inventory and jostling for market share. Battery price is falling with lithium price collapsing. Electric vehicle makers may cut costs meaningfully from second quarter. Mass-market internal combustion engine (ICE) models are vulnerable, with both volume and price pressure. Rating outlook: Rating downgrade risk is high for Geely and Dongfeng, given margin and leverage pressure amid electrification. We see reasonable rating buffers for Beijing Auto, BAIC Motor, China FAW, Johnson Electric, and Yanfeng International. We expect CATL to further solidify its business strength while sustaining a net cash position....
