HSBC28May2025

GlobalResearch

Equities

Automobiles

JOINWebcast:GlobalAutos|Navigatingtradeuncertainty

Thursday,5Juneat9:00AMNYT/2:00PMUKT

Discussiontopics

uAlleyesareontradetalksbetweentheUS,EU,andChinawithmanyinvestorslookingforsignsofde-escalation.

uAutosectorimpactswillvarybasedongeography.Mitigationeffortsareabig

unknownfortheEU,andintheUSweexpectmodestpricehikesandproductioncuts.ChinesefirmscouldbenefitfromEUEVtariffchanges,andKorean

companieshavetakenmeasuresfortariffresilience.

uJoinourautosanalyststouncoverpotentialopportunitiesandgaininsightonthischallengingtradeenvironment.

uClickheretoregisterforthewebcastandsubmityourquestionsthroughtheQ&Afeature.

Speakers

uMichaelTYNDALL,HeadofEuropeanAutomotiveEquityResearch

uYuqianDING,HeadofChinaAutosResearch

uWesleyBROOKS,SeniorAnalyst,IndustrialsandAutos

uWillCHO,Analyst,KoreaEVBattery,AutosandTechnology

Reports

uEUAutos:GermanOEMsinChina:Downbutnotout(28-May-25)

uChinaEVandESSbattery:Batterypricesbottoming,costtailwind,tariffimpact

(15-May-25)

uEUAutosWhat’sbakedin:Lookingforclear(er)space(12-May-25)

uKoreaEVBattery1Q25review–aperiodofadjustments(30-Apr-25)

uKoreaAutos1Q25review–howtonavigateuncertainty(28-Apr-25)

uChinaElectricVehiclesShanghaiautoshowandtriptakeaways(29-Apr-25)

uTeslaInc(TSLAUS)Reduce:Promisesvs.fundamentals(23-Apr-25)

uUSAutos-Tariffshithome(OEMs)(14-Apr-25)

Webcastdetails

uWebcast(liveandreplay):

/W/10/4976706/42FEA188A34994C45E39C8FAB34F2BE0

uAvailableabout1houraftertheconclusionofthecall

uPleasetestyoursystemsettingspriortothestartofthecallbyclickingHERE

MichaelTyndall*,CFA

HeadofEuropeanAutomotiveEquityResearch

HSBCBankplc

michael.tyndall@

+442033596301

YuqianDing*

HeadofChinaAutosResearch

TheHongkongandShanghaiBankingCorporationLimitedyuqian.ding@.hk

+85222885108

WesleyBrooks,CFA

SeniorAnalyst,IndustrialsandAutos

HSBCSecurities(USA)Inc.

wesley.brooks@

+12125250337

WillCho*

Analyst,KoreaEVBattery,AutosandTechnology

TheHongkongandShanghaiBankingCorporationLimited,SeoulSecuritiesBranch

will.cho@

+82237068765

*Employedbyanon-USaffiliateofHSBCSecurities(USA)Inc,andisnotregistered/qualifiedpursuanttoFINRAregulation

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Disclosures&Disclaimer

ThisreportmustbereadwiththedisclosuresandtheanalystcertificationsintheDisclosureappendix,andwiththeDisclaimer,whichformspartofit.

Issuerofreport:HSBCBankplc

ViewHSBCGlobalResearchat:

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4▲HSBC

Equities●Automobiles

28May2025

Disclosureappendix

AnalystCertification

Thefollowinganalyst(s),economist(s),orstrategist(s)whois(are)primarilyresponsibleforthisreport,includinganyanalyst(s)whosename(s)appear(s)asauthorofanindividualsectionorsectionsofthereportandanyanalyst(s)namedasthecoveringanalyst(s)ofasubsidiarycompanyinasum-of-the-partsvaluationcertifies(y)thattheopinion(s)onthesubjectsecurity(ies)orissuer(s),anyviewsorforecastsexpressedinthesection(s)ofwhichsuchindividual(s)is(are)namedasauthor(s),andanyotherviewsorforecastsexpressedherein,includinganyviewsexpressedonthebackpageoftheresearchreport,accuratelyreflecttheirpersonalview(s)andthatnopartoftheircompensationwas,isorwillbedirectlyorindirectlyrelatedtothespecificrecommendation(s)orviewscontainedinthisresearchreport:MichaelTyndall,CFA,YuqianDing,WesleyBrooks,CFAandWillCho

Importantdisclosures

Equities:Stockratingsandbasisforfinancialanalysis

HSBCanditsaffiliates,includingtheissuerofthisreport(“HSBC”)believesaninvestor'sdecisiontobuyorsellastockshoulddependonindividualcircumstancessuchastheinvestor'sexistingholdings,risktoleranceandotherconsiderationsandthatinvestorsutilisevariousdisciplinesandinvestmenthorizonswhenmakinginvestmentdecisions.Ratingsshouldnotbeusedorreliedoninisolationasinvestmentadvice.Differentsecuritiesfirmsuseavarietyofratingstermsaswellasdifferentratingsystemstodescribetheirrecommendationsandthereforeinvestorsshouldcarefullyreadthedefinitionsoftheratingsusedineachresearchreport.Further,investorsshouldcarefullyreadtheentireresearchreportandnotinferitscontentsfromtheratingbecauseresearchreportscontainmorecompleteinformationconcerningtheanalysts'viewsandthebasisfortherating.

From23rdMarch2015HSBChasassignedratingsonthefollowingbasis:

Thetargetpriceisbasedontheanalyst’sassessmentofthestock’sactualcurrentvalue,althoughweexpectittotakesixto12monthsforthemarketpricetoreflectthis.Whenthetargetpriceismorethan20%abovethecurrentshareprice,thestockwillbeclassifiedasaBuy;whenitisbetween5%and20%abovethecurrentshareprice,thestockmaybeclassifiedasaBuyoraHold;whenitisbetween5%belowand5%abovethecurrentshareprice,thestockwillbeclassifiedasaHold;whenitisbetween5%and20%belowthecurrentshareprice,thestockmaybeclassifiedasaHoldoraReduce;andwhenitismorethan20%belowthecurrentshareprice,thestockwillbeclassifiedasaReduce.

Ourratingsarere-calibratedagainstthesebandsatthetimeofany'materialchange'(initiationorresumptionofcoverage,changeintargetpriceorestimates).

Upside/Downsideisthepercentagedifferencebetweenthetargetpriceandtheshareprice.

Priortothisdate,HSBC’sratingstructurewasappliedonthefollowingbasis:

Foreachstockwesetarequiredrateofreturncalculatedfromthecostofequityforthatstock’sdomesticor,asappropriate,regionalmarketestablishedbyourstrategyteam.Thetargetpriceforastockrepresentedthevaluetheanalystexpectedthestocktoreachoverourperformancehorizon.Theperformancehorizonwas12months.ForastocktobeclassifiedasOverweight,thepotentialreturn,whichequalsthepercentagedifferencebetweenthecurrentsharepriceandthetargetprice,includingtheforecastdividendyieldwhenindicated,hadtoexceedtherequiredreturnbyatleast5percentagepointsoverthesucceeding12months(or10percentagepointsforastockclassifiedasVolatile*).ForastocktobeclassifiedasUnderweight,thestockwasexpectedtounderperformitsrequiredreturnbyatleast5percentagepointsoverthesucceeding12months(or10percentagepointsforastockclassifiedasVolatile*).StocksbetweenthesebandswereclassifiedasNeutral.

*Astockwasclassifiedasvolatileifitshistoricalvolatilityhadexceeded40%,ifthestockhadbeenlistedforlessthan12months(unlessitwasinanindustryorsectorwherevolatilityislow)oriftheanalystexpectedsignificantvolatility.However,stockswhichwedidnotconsidervolatilemayinfactalsohavebehavedinsuchaway.Historicalvolatilitywasdefinedasthepastmonth'saverageofthedaily365-daymovingaveragevolatilities.Inordertoavoidmisleadinglyfrequentchangesinrating,however,volatilityhadtomove2.5percentagepointspastthe40%benchmarkineitherdirectionforastock'sstatustochange.

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Ratingdistributionforlong-terminvestmentopportunities

Asof31March2025,thedistributionofallindependentratingspublishedbyHSBCisasfollows:

Buy55%(14%oftheseprovidedwithInvestmentBankingServicesinthepast12months)

Hold39%(11%oftheseprovidedwithInvestmentBankingServicesinthepast12months)

Sell6%(8%oftheseprovidedwithInvestmentBankingServicesinthepast12months)

Forthepurposesofthedistributionabovethefollowingmappingstructureisusedduringthetransitionfromtheprevioustocurrentratingmodels:underourpreviousmodel,Overweight=Buy,Neutral=HoldandUnderweight=Sell;underourcurrentmodelBuy=Buy,Hold=HoldandReduce=Sell.Forratingdefinitionsunderbothmodels,pleasesee“Stockratingsandbasisforfinancialanalysis”above.

Forthedistributionofnon-independentratingspublishedbyHSBC,pleaseseethedisclosurepageavailableat

/gbm/financial-regulation/investment-recommendations-disclosures

.

Toviewalistofalltheindependentfundamentalratings/recommendationsdisseminatedbyHSBCduringthepreceding12-monthperiod,andthelocationwherewepublishourquarterlydistributionofnon-fundamentalrecommendations(applicabletoFixedIncomeandCurrenciesresearchonly),pleaseusethefollowinglinkstoaccessthedisclosurepage:

ClientsofHSBCPrivateBanking:

/Disclosures

Allotherclients:

/A/Disclosures

HSBCanditsaffiliateswillfromtimetotimeselltoandbuyfromcustomersthesecurities/instruments,bothequityanddebt(includingderivatives)ofcompaniescoveredinHSBCResearchonaprincipaloragencybasisoractasamarketmakerorliquidityproviderinthesecurities/instrumentsmentionedinthisreport.

Analysts,economists,andstrategistsarepaidinpartbyreferencetotheprofitabilityofHSBCwhichincludesinvestmentbanking,sales&trading,andprincipaltradingrevenues.

Whether,orinwhattimeframe,anupdateofthisanalysiswillbepublishedisnotdeterminedinadvance.

Non-U.S.analystsmaynotbeassociatedpersonsofHSBCSecurities(USA)Inc,andthereforemaynotbesubjecttoFINRARule2241orFINRARule2242restrictionsoncommunicationswiththesubjectcompany,publicappearancesandtradingsecuritiesheldbytheanalysts.

EconomicsanctionslawsimposedbycertainjurisdictionssuchastheUS,theEU,theUK,andothers,mayprohibitpersonssubjecttothoselawsfrommakingcertaintypesofinvestments,includingbytransactingordealinginsecuritiesofparticularissuers,sectors,orregions.Thisreportdoesnotconstituteadviceinrelationtoanysuchlawsandshouldnotbeconstruedasaninducementtotransactinsecuritiesinbreachofsuchlaws.

Fordisclosuresinrespectofanycompanymentionedinthisreport,pleaseseethemostrecentlypublishedreportonthatcompanyavailableat

/research

.HSBCPrivateBankingclientsshouldcontacttheirRelationshipManagerforqueriesregardingotherresearchreports.Inordertofindoutmoreabouttheproprietarymodelsusedtoproducethisreport,pleasecontacttheauthoringanalyst.

Additionaldisclosures

1Thisreportisdatedasat28May2025.

2Allmarketdataincludedinthisreportaredatedasatclose27May2025,unlessadifferentdateand/oraspecifictimeofdayisindicatedinthereport.

3HSBChasproceduresinplacetoidentifyandmanageanypotentialconflictsofinterestthatariseinconnectionwithits

Researchbusiness.HSBC'sanalystsanditsotherstaffwhoareinvolvedinthepreparationanddisseminationof

ResearchoperateandhaveamanagementreportinglineindependentofHSBC'sInvestmentBankingbusiness.

InformationBarrierproceduresareinplacebetweentheInvestmentBanking,PrincipalTrading,andResearchbusinessestoensurethatanyconfidentialand/orpricesensitiveinformationishandledinanappropriatemanner.

4Youarenotpermittedtouse,forreference,anydatainthisdocumentforthepurposeof(i)determiningtheinterest

payable,orothersumsdue,underloanagreementsorunderotherfinancialcontractsorinstruments,(ii)determiningthepriceatwhichafinancialinstrumentmaybeboughtorsoldortradedorredeemed,orthevalueofafinancialinstrument,and/or(iii)measuringtheperformanceofafinancialinstrumentorofaninvestmentfund.

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Production&distributiondisclosures

1.Thisreportwasproducedandsignedoffbytheauthor

2.Inordertoseewhenthisreportwasfirstdisseminated

/R/34/pMSTBJs

Equities●Automobiles

28May2025

on28May202515:41GMT.

pleaseseethedisclosurepageavailableat

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Disclaimer

Legalentitiesasat7December2024:

HSBCBankplc;HSBCContinentalEurope;HSBCContinentalEuropeSA,Germany;HSBCBankMiddleEastLimited,DIFC;HSBCBankMiddleEastLimited,UAEbranch;HSBCYatirimMenkulDegerlerAS,Istanbul;TheHongkongandShanghaiBankingCorporationLimited,HongKong;TheHongkongandShanghaiBankingCorporationLimited,SingaporeBranch;TheHongkongandShanghaiBankingCorporationLimited,SeoulSecuritiesBranch;TheHongkongandShanghaiBankingCorporationLimited,SeoulBranch;HSBCQianhaiSecuritiesLimited;HSBCSecurities(Taiwan)CorporationLimited;HSBCSecuritiesandCapitalMarkets(India)PrivateLimited,Mumbai;HSBCBankAustraliaLimited;HSBCSecurities(USA)Inc.,NewYork;HSBCMéxico,SA,InstitucióndeBancaMúltiple,GrupoFinancieroHSBC;BancoHSBCSA

IssuerofreportHSBCBankplc

8CanadaSquare

London,E145HQ,UnitedKingdomTelephone:+442079918888

Fax:+442079924880

Website:

IntheUK,thispublicationisdistributedbyHSBCBankplcfortheinformationofitsClients(asdefinedintheRulesofFCA)andthoseofitsaffiliatesonly.NothinghereinexcludesorrestrictsanydutyorliabilitytoacustomerwhichHSBCBankplchasundertheFinancialServicesandMarketsAct2000orundertheRulesofFCAandPRA.ArecipientwhochoosestodealwithanypersonwhoisnotarepresentativeofHSBCBankplcintheUKwillnotenjoytheprotectionsaffordedbytheUKregulatoryregime.HSBCBankplcisregulatedbytheFinancialConductAuthorityandthePrudentialRegulationAuthority.IfthisresearchisreceivedbyacustomerofanaffiliateofHSBC,itsprovisiontotherecipientissubjecttothetermsofbusinessinplacebetweentherecipientandsuchaffiliate.Thedocumentisintendedtobedistributedinitsentirety.Unlessgoverninglawpermitsotherwise,youmustcontactaHSBCGroupmemberinyourhomejurisdictionifyouwishtouseHSBCGroupservicesineffectingatransactioninanyinvestmentmentionedinthisdocument.Thisdocumentisnotandshouldnotbeconstruedasanoffertosellorthesolicitationofanoffertopurchaseorsubscribeforanyinvestment.HSBChasbasedthisdocumentoninformationobtainedfromsourcesitbelievestobereliablebutwhichithasnotindependentlyverified;HSBCmakesnoguarantee,representationorwarrantyandacceptsnoresponsibilityorliabilityastoitsaccuracyorcompleteness.Theopinionscontainedwithinthereportarebaseduponpubliclyavailableinformationatthetimeofpublicationandaresubjecttochangewithoutnotice.Fromtimetotimeresearchanalystsconductsitevisitsofcoveredissuers.HSBCpoliciesprohibitresearchanalystsfromacceptingpaymentorreimbursementfortravelexpensesfromtheissuerforsuchvisits.Pastperformanceisnotnecessarilyaguidetofutureperformance.Thevalueofanyinvestmentorincomemaygodownaswellasupandyoumaynotgetbackthefullamountinvested.Whereaninvestmentisdenominatedinacurrencyotherthanthelocalcurrencyoftherecipientoftheresearchreport,changesintheexchangeratesmayhaveanadverseeffectonthevalue,priceorincomeofthatinvestment.Incaseofinvestmentsforwhichthereisnorecognisedmarketitmaybedifficultforinvestorstoselltheirinvestmentsortoobtainreliableinformationaboutitsvalueortheextentoftherisktowhichitisexposed.HSBCBankplcisregisteredinEnglandNo14259,isauthorisedbythePrudentialRegulationAuthorityandregulatedbytheFinancialConductAuthorityandthePrudentialRegulationAuthorityandisamemberoftheLondonStockExchange.(070905)

IntheEuropeanEconomicArea,thispublicationhasbeendistributedbyHSBCContinentalEuropeorbysuchotherHSBCaffiliatefromwhichtherecipientreceivesrelevantservices.

InHongKong,thisdocumenthasbeendistributedbyTheHongkongandShanghaiBankingCorporationLimitedintheconductofitsHongKongregulatedbusinessfortheinformationofitsinstitutionalandprofessionalcustomers;itisnotintendedforandshouldnotbedistributedtoretailcustomersinHongKong.TheHongkongandShanghaiBankingCorporationLimitedmakesnorepresentationsthattheproductsorservicesmentionedinthisdocumentareavailabletopersonsinHongKongorarenecessarilysuitableforanyparticularpersonorappropriateinaccordancewithlocallaw.AllinquiriesbysuchrecipientsmustbedirectedtoTheHongkongandShanghaiBankingCorporationLimited.InKorea,thispublicationisdistributedbyeitherTheHongkongandShanghaiBankingCorporationLimited,SeoulSecuritiesBranch("HBAPSLS")orTheHongkongandShanghaiBankingCorporationLimited,SeoulBranch("HBAPSEL")forthegeneralinformationofprofessionalinvestorsspecifiedinArticle9oftheFinancialInvestmentServicesandCapitalMarketsAct("FSCMA").ThispublicationisnotaprospectusasdefinedintheFSCMA.Itmaynotbefurtherdistributedinwholeorinpartforanypurpose.BothHBAPSLSandHBAPSELareregulatedbytheFinancialServicesCommissionandtheFinancialSupervisoryServiceofKorea.InSingapore,thispublicationisdistributedbyTheHongkongandShanghaiBankingCorporationLimited,SingaporeBranchforthegeneralinformationofinstitutionalinvestorsorotherpersonsspecifiedinSections274and304oftheSecuritiesandFuturesAct(Chapter289)("SFA")andaccreditedinvestorsandotherpersonsinaccordancewiththeconditionsspecifiedinSections275and305oftheSFA.OnlyEconomicsorCurrenciesreportsareintendedfordistributiontoapersonwhoisnotanAccreditedInvestor,ExpertInvestororInstitutionalInvestorasdefinedinSFA.TheHongkongandShanghaiBankingCorporationLimited,SingaporeBranchacceptslegalresponsibilityforthecontentsofreports.ThispublicationisnotaprospectusasdefinedintheSFA.Itmaynotbefurtherdistributedinwholeorinpartforanypurpose.TheHongkongandShanghaiBankingCorporationLimitedSingaporeBranchisregulatedbytheMonetaryAuthorityofSingapore.RecipientsinSingaporeshouldcontacta"HongkongandShanghaiBankingCorporationLimited,SingaporeBranch"representativeinrespectofanymattersarisingfrom,orinconnectionwiththisreport.PleaserefertoTheHongkongandShanghaiBankingCorporationLimitedSingaporeBranch'swebsiteat.sgforcontactdetails.InAustralia,thispublicationhasbeendistributedbyTheHongkongandShanghaiBankingCorporationLimited(ABN65117925970,AFSL301737)forthegeneralinformationofits"wholesale"customers(asdefinedintheCorporationsAct2001).Wheredistributedtoretailcustomers,thisresearchisdistributedbyHSBCBankAustraliaLimited(ABN48006434162,AFSLNo.232595).TheserespectiveentitiesmakenorepresentationsthattheproductsorservicesmentionedinthisdocumentareavailabletopersonsinAustraliaorarenecessarilysuitableforanyparticularpersonorappropriateinaccordancewithlocallaw.Noconsiderationhasbeengiventotheparticularinvestmentobjectives,financialsituationorparticularneedsofanyrecipient.ThispublicationhasbeendistributedinJapanbyHSBCSecurities(Japan)Co.,Ltd..Itmaynotbefurtherdistributed,inwholeorinpart,foranypurpose.

HSBCSecurities(USA)Inc.acceptsresponsibilityforthecontentofthisresearchreportpreparedbyitsnon-USforeignaffiliate.Theinformationcontainedhereinisundernocircumstancestobeconstruedasinvestmentadviceandisnottailoredtotheneedsoftherecipient.AllU.S.personsreceivingand/oraccessingthisreportandwishingtoeffecttransactionsinanysecuritydiscussedhereins