A "relay race" of share buybacks and repurchases is unfolding in the automotive industry. As of the close on April 10, preliminary statistics from reporters show that at the OEM level, JAC, Zhongtong Bus, and Seres have successively disclosed share buyback plans, with a total maximum amount of approximately 250 million yuan.
Following the statement from China South Industries Group, FAW and Dongfeng Motor announced on April 9 that they would further carry out share buybacks and repurchases. Among them, FAW stated that based on confidence in the long-term stable growth of China's economy and a firm belief in the development of China's capital market, it will continue to fulfill its responsibilities as a controlling shareholder, resolutely support the high-quality development of its listed companies, persistently promote the enhancement of market value management of its listed companies, and further implement measures such as share buybacks and repurchases to safeguard the interests of investors and create value for all shareholders.
On the evening of April 9, FAW Fuwei took the lead by issuing an announcement stating that its shareholder, FAW Equity Investment (Tianjin) Co., Ltd., plans to increase its shareholding through the Shanghai Stock Exchange via centralized bidding transactions from the date of the announcement to December 31, 2025, with a planned amount of no less than 25 million yuan and no more than 50 million yuan.
"Based on confidence in the prospects of the company's automotive business and recognition of its long-term investment value, Dongfeng will further carry out share buybacks and repurchases to consolidate market confidence and promote win-win outcomes for all parties," Dongfeng stated on the same day, adding that it will continuously create higher returns for all shareholders and drive its listed companies to take multiple measures to enhance investment value, having already completed share buybacks and repurchases exceeding 2 billion yuan.
In addition, Zhongtong Bus announced that its chairman, Wang Xingfu, proposed to repurchase company shares through centralized bidding transactions from the secondary market, with a total repurchase amount of no less than 60 million yuan and no more than 120 million yuan.
Huang Bo, Chief Investment Advisor at Founder Securities, believes that the intensive announcement of buyback plans by listed companies, using real money to express firm confidence in the company's future development, on one hand, indicates shareholders' optimism about the company's future prospects and intrinsic value; on the other hand, in the current market environment, it also reflects the responsibility of listed companies to actively respond to market changes and safeguard shareholder interests, proactively conveying confidence to the market.
Prior to this, GAC Group announced on April 8 that based on confidence in the company's future development and value, the company will accelerate the implementation of its share repurchase plan in accordance with market conditions to protect the interests of investors, enhance their confidence in the company, and stabilize and increase the company's value. On the same day, JAC announced that it had received notice from its controlling shareholder, Anhui Jianghuai Automobile Group Holdings Co., Ltd., that JAC Holdings plans to increase its shareholding in the company using its own funds within six months from the date of the announcement, with a planned cumulative amount of no less than 50 million yuan and no more than 100 million yuan. Additionally, Seres announced that its senior management and key team members plan to increase their shareholding in the company through centralized bidding and other methods within six months from the date of the announcement, with a planned amount of no less than 15 million yuan and no more than 30 million yuan.
Corresponding to the intensive announcements of share buybacks and repurchases by multiple listed automakers and their controlling shareholders is the "darkest hour" for global automotive trade. On April 10, US President Trump suspended multiple tariffs for 90 days but did not stop the 25% tariff on auto imports and the upcoming tariffs on auto parts. The previous week, the US government confirmed that it would impose a 25% tariff on all cars and trucks produced entirely or partially outside the US, effective April 3. It is reported that the 25% tariff will apply to imported passenger cars (sedans, SUVs, etc.) and light trucks, as well as key auto parts (engines, transmissions, etc.), and will be extended to other parts if necessary.
Huatai Securities' research report points out that in 2024, China's auto exports to the US accounted for only 1.8% of China's total auto exports, with a market share of less than 0.6% in the US market, and most of these were models produced by Sino-US joint ventures in China and then sold back to the US. The 25% auto tariff has a relatively small negative impact on direct exports from China, primarily affecting the expected revenue and profits of leading automakers from Japan, South Korea, and Germany. "This round of policies is relatively favorable to North American producers that meet USMCA regulations and will indirectly promote cooperation between China and other countries and regions. Chinese automakers may gain more incremental opportunities in regions such as the EU and Southeast Asia."
"The US tariff increase provides greater development space for Chinese EVs in overseas markets," said Cui Dongshu, Secretary General of the Passenger Car Association. He analyzed that in the past, Chinese cars faced a complex environment in overseas markets, but now the world trade order is showing a multipolar development trend, which instead provides Chinese cars with relatively independent development space in various countries, especially in the field of intelligent electrification, where there will be better opportunities. The core of intelligent electrification is electrification, and the core of electrification is the industry chain, in which China has a huge advantage. "We believe that in the future, we should strive to develop small and micro EVs and plug-in hybrid models to achieve our expansion in overseas markets."
Wang Qing, Deputy Director of the Market Economy Research Institute of the Development Research Center of the State Council, stated that comprehensive judgment shows that under the condition of no new disturbances, China's auto sales will grow by approximately 3%-4% in 2025. "In H2, affected by the significant increase in the base from last year, the overall growth rate will pull back, but monthly sales will not be too bad," Wang Qing believes.
