18 December Asia

Asian Autos: Increasing Exposure Reflects Rising Market Confidence

100 Active Asia Ex-Japan Funds, AUM $54bn

Asian Autos: Increasing Exposure Reflects Rising Market Confidence

• Improved sentiment in Asia Ex-Japan Autos sector as sustained increases in positioning continue through 2023.
• BYD Company most widely held but stabilizing; Li Auto sees increased buying. Sector 7th most owned, underweight by -0.85%.
• Rising allocations, low historical positioning and net underweight suggest potential continued demand for Auto stocks

Time Series & Industry Activity

Active Asia Ex-Japan funds continue to increase their positions in the Motor Vehicles sector. From a high of 4.86% in 2014, average weights fell to a low of 1.18% in mid-2020, but have since shown a consistent recovery to 2.75% today, as detailed in Chart 1. Previously a holding in nearly all of the funds in our analysis back in 2014, Motor Vehicles are now an exposure for 75% of the funds in our analysis, up from a low of 66% in 2020, though suffering a dip in-between (chart3). Compared to the benchmark, Asia Ex-Japan funds are underweight by -0.85%, with 34% holding an overweight position. Again, these figures have improved from their lows but remain below previous peak levels (ch 2&4).

Since June of this year, Motor Vehicles exposure has experienced one of the most pronounced rotations among industry groups in the region. The sector’s 5% increase in fund investment was surpassed only by Financial Conglomerates, and the shift to an overweight position by 7% of funds was exceeded only by Major Pharmaceuticals. The average weight gain of +0.27% in Motor Vehicles ranks among the highest in the region, contributing to a reduction in the net underweight of +0.22%.

Industry Positioning & Sentiment

Motor Vehicles now occupy a unique position as the 7th most widely owned industry group in terms of both ownership and average holding weight. They stand distinct from the top six groups, which are held by over 89% of managers and carry average weights of at least 4% – and higher still in sectors like Semiconductors and Banks.  Compared to the benchmark, the Motor Vehicles underweight of -0.85% ranks as the third largest deficit across all industry groups, trailing only Information Technology Services at -0.88% and Electric Utilities at -1.34%.

The Sentiment Grid below combines long-term positioning with recent manager activity into one chart. The Y-axis shows the ‘Position Score’, a measure of current positioning in each Industry compared to its own history going back to 2011 on a scale of 0-100%.  The X-Axis shows the ‘Momentum Score’, a measure of fund manager activity for each Industry between 06/30/2022 and 11/30/2023 on a scale of 0% (maximum negative activity) to 100% (maximum positive activity).  The recovery in the Motor Vehicles sector is clearly depicted in the bottom right quadrant, signifying a sector that is attracting inflows while remaining underowned compared to its historical average.

Country Breakdown

Analyzing Motor Vehicles exposure by country, the majority of holdings are in India, China & HK, and South Korea, which together make up 94% of the total industry allocation (Chart 1). India and China & HK lead with 52% and 50% of funds invested respectively, while South Korean autos are held by just 26% of funds (Chart 2). All three countries are net underweights relative to the benchmark, though China & HK stands out.  It is an underweight for 75% of funds at an average of -0.65% below the iShares All Country Asia Ex-Japan ETF (Chart 3).

The chart below outlines the long-term trends in fund ownership for the six largest Motor Vehicles country allocations. It reveals that the initial decline from 2014 to 2020 was primarily driven by South Korean autos, which have also played a significant role in the recent recovery. Indian Autos, however, have seen a more robust resurgence, surpassing China & HK Autos as the industry group’s most widely held country allocation in recent months.

India Motor Vehicles Focus

The chart dashboard below shows the latest holding metrics for the Indian Motor Vehicles sector.  Chart 1 shows the distribution of fund weights, with most of the current holders maintaining between a 1%-4% allocation.  Charts 2 and 3 show the holdings split by Style, with Aggressive Growth funds the most bullishly positioned and Value lagging some way behind.  The larger allocators sit above 5% and are led by Morgan Stanley Sustainable Asia Equity (5.96%) and GS Asian Equity (5.81%), both helping to drive allocations back towards the highs of 2016, as shown in charts 4 and 6.  At the stock level, Maruti Suzuki stands out as the most widely held, owned by 23% of funds with an average weight of 0.39%, closely followed by Mahindra & Mahindra. Notably, recent fund activity has shown a preference for TVS Motor Company, with four funds initiating exposure since June.  The PDF attachment at the end of the report contains profiles for all major countries in the Motor Vehicles industry group.

Stock Holdings & Activity

Incorporating stocks from across the region, BYD Company emerges as the most popular name in the Autos sector, held by a quarter of managers with an average weight of 0.38%. Li Auto ranks just after the two leading Indian companies, followed by the notable South Korean autos, Kia Corp and Hyundai Motors. In general though, ownership levels are very low for most of the Auto stocks in the region.  Noteworthy individual stakes in specific companies include GS Funds’ 5.8% position in Maruti Suzuki and Mirae ESG Asia’s 5.3% stake in BYD Company.

Analyzing fund activity from 06/30/2023 to 11/30/2023, Li Auto Inc. stands out, registering a 4% increase in the percentage of funds invested, matching the growth seen in TVS Motor Company. Additionally, there was an uptick in ownership for Yutong Bus Co and Mahindra & Mahindra. In contrast, Eicher Motors and the widely owned BYD Company saw their ownership levels decrease during this period.

BYD Company Focus

BYD Company, after experiencing significant ownership growth from 2020 to 2023, now stands as the most widely held stock in the industry group. Recently, however, ownership levels have begun to stabilize, with select funds from Fidelity to SEB reducing or closing their positions. While the majority of the current investor base hold position sizes in BYD Company below 2.5%, there are exceptions, led by Mirae ESG Asia (5.3%), Carnegie Asia (3.7%) and CRUX Asia Ex-Japan (2.6%).  The PDF attachment at the end of the report contains profiles for all major Motor Vehicle stocks.

Fund Holdings & Activity

The top chart below illustrates the range of fund weights in the Motor Vehicles sector as of the end of November, revealing a core grouping of funds with allocations in the 2-4% range and a smaller group extending beyond 6%. Despite Growth and Aggressive Growth investors dominating 16 of the top 20 allocations, the limited number of Value investors in our analysis hold a comparatively higher average weight.  

Fund activity in the Motor Vehicles sector between 06/30/2023 and 11/30/2023 reflects the net positive trend, with five new positions opened and none closed. Gains outnumbered reductions, with 45 funds increasing and 31 decreasing their weights. Increases were led by LO Funds Asia High Conviction and HSBC Asia Ex-Japan. It wasn’t entirely positive, with outflows from Fidelity and Vontobel contributing to a total net outflow of $76m during the period, highlighting some cautiousness in the sector.

Conclusions & Links

The adjacent chart illustrates the average fund weights across the six major industry groups within the Consumer Discretionary sector. A key shift occurred in 2016 when Internet Retail surpassed Motor Vehicles in average fund weight, with the spread peaking at over 8% in late 2020. The subsequent decline in Internet Retail stocks corresponded with a rebound in Motor Vehicle stock allocations. Over the past three years, the gap between these two industries has steadily narrowed, reaching its smallest differential since 2018 of ~2.4%.

On our metrics then, we appear to be witnessing a tangible improvement in sentiment towards the Asia Ex-Japan Motor Vehicles sector, evidenced by rising allocations and an increasing number of funds reinstating their exposure.  Given the sector’s current low positioning relative to historical levels and its net underweight status against benchmarks, these factors could well underpin robust demand for Motor Vehicle stocks in the months ahead.

Click below for an extended data report on Motor Vehicles positioning among Asia Ex-Japan funds.

100 Active Asia Ex-Japan Funds, AUM $54bn

Asia Ex-Japan Active Funds Ownership Report

Please click on the link below for the full data report on Asia Ex-Japan active fund positioning

For more analysis, data or information on active investor positioning in your market, please get in touch with me on steven.holden@copleyfundresearch.com

 

Terms and Conditions

Investor Positioning Report — Copley Fund Research Ltd  ·  Last updated: July 2026  ·  Registered in England and Wales

1. Who we are

Copley Fund Research Ltd provides proprietary institutional fund intelligence to listed companies and investor relations professionals. These terms govern every purchase of an Investor Positioning Report. By completing a purchase you confirm you have read, understood, and agreed to these terms in full.

2. What you are purchasing

The Investor Positioning Report is a bespoke PDF report mapping the institutional fund universe around your stock. It covers current investors, past investors, competitor investors, and white space investors. Every report is built from scratch for the specific company ordered and is not a standardised or templated product.

3. Delivery and process

Following payment or invoice issuance, Copley Fund Research will contact you within one working day to agree your competitor set. Production begins once the competitor set is confirmed in writing. The completed report will be released to you within 48 hours of production starting, provided payment has been received in full; where payment is outstanding, the report will be withheld until payment clears. If the requested company falls outside our covered fund universes, or a competitor set cannot be agreed, Copley Fund Research will issue a full refund or cancel the outstanding invoice.

4. Competitor set agreement

The competitor set is agreed with you in writing prior to production, and the report is built to that agreed specification. Requests to amend the competitor set after delivery, based on a change of preference rather than an error, may be treated as a new order.

5. Refund policy

Because each report is produced individually for your company, orders are non-refundable once production has begun, except as set out in clauses 3 and 5a below. By purchasing, you agree not to dispute the charge with your card provider on the basis that the service was not as described, provided the report has been delivered to the agreed specification or corrected under clause 5a.

5a. Quality remedy

If a delivered report contains a material error caused by Copley Fund Research — for example, an incorrect company analysed, a competitor omitted from the agreed set, or content missing from the specification in clause 2 — Copley Fund Research will correct and redeliver the report at no additional charge, within a reasonable timeframe. This is your sole remedy for such errors.

6. Data and accuracy

All fund positioning data in the report reflects holdings as disclosed at the most recently available reporting date at the time of compilation. The timing of fund holdings disclosures is determined by regulatory requirements applicable to each fund and is outside the control of Copley Fund Research Ltd. This data may not reflect current fund positions. Copley Fund Research takes reasonable care to ensure accuracy but makes no warranty, express or implied, as to the completeness or current accuracy of the underlying data — though this does not affect the quality remedy in clause 5a for errors in how that data was analysed or presented. Past fund positioning is not indicative of future fund behaviour or investment decisions.

7. Not investment advice

The Investor Positioning Report is produced for investor relations intelligence purposes only. It does not constitute investment advice, financial advice, or a recommendation to buy, hold, or sell any security. The data reflects historical fund positioning and must not be relied upon as a prediction of future fund behaviour or investment decisions. Copley Fund Research Ltd is not authorised or regulated by the Financial Conduct Authority for the provision of investment advice.

8. Permitted use and confidentiality

The report is licensed for internal use by the purchasing organisation only. You may share it with employees and directors of your organisation. You may not: reproduce, redistribute, publish, or resell the report or any part of it; share it with any third party outside your organisation without prior written consent; use the fund or portfolio manager names contained in the report to approach those individuals on behalf of Copley Fund Research or in a manner that could damage Copley Fund Research's relationships with those funds; or use the data for any purpose other than your own investor relations strategy. The data, analysis, and methodology contained in the report are the intellectual property of Copley