Citi: Xiaomi Corporation-W's car sales fell last week and may need to consider promotions

Citi released a research report stating that last week, the domestic automotive market continued to cool down after the long holiday, in line with past trends. Based on media reports of safety incidents involving Xiaomi Corporation-W's vehicles, some buyers even canceled their orders after paying deposits, causing Xiaomi's weekly order volume to drop from an average of 5,500 vehicles per week in September to about 4,000 vehicles last week. Given the negative sentiment among consumers, the firm believes Xiaomi may need to consider promotions and improve vehicle design to enhance safety. From an industry perspective, the firm expects that until the end of the first quarter of next year, automakers will use their own funds to cover the full tax benefits enjoyed by consumers, as regulators are expected to halve the relevant benefits next year; this may pose temporary pressure on automakers' free cash flow