Investment Highlights - In the first week of October, compulsory insurance reached 463,000 vehicles, down 28.2% week-on-week but up 28.4% month-on-month [2] - The performance of sub-sectors this week ranked as follows: SW Commercial Passenger Vehicles (+7.4%) > SW Motorcycles and Others (-0.9%) > SW Passenger Vehicles (-1.0%) > SW Auto Parts (-1.7%) > SW Commercial Cargo Vehicles (-1.9%) [2] - The top five stocks covered this week included King Long Automobile, Daimay Co., Yutong Bus, China National Heavy Duty Truck Group H, and China National Heavy Duty Truck Group A [2] Industry Core Changes - Xiaopeng Motors appointed Liu Xianming, the head of the World Base Model, as the new leader of the Smart Driving No. 1 position [3] - Seres' subsidiary, Chongqing Phoenix Technology, signed a business cooperation framework agreement with Volcano Engine [3] - Changan's Qiyuan Q07 Tian Shu Intelligent Laser version was officially launched, equipped with Horizon Journey 6M [3] Q4 Investment Opportunities in AI Smart Vehicles - The automotive sector underperformed the broader market this week, with buses performing the best among sub-sectors [4] - Key changes included the leadership change at Xiaopeng Smart Driving, Yutong's September sales exceeding expectations, Seres' collaboration with ByteDance on embodied intelligence, and strong sales in heavy trucks for September [4] Current Configuration of the Automotive Sector - The automotive industry is entering a new crossroads phase, with the electric vehicle (EV) boom nearing its end and smart vehicle technology in a "dark before dawn" stage [5] - Three main investment opportunities are identified: - **AI Smart Vehicle Main Line**: Focus on Robotaxi/van and C-end vehicles - **Upstream Supply Chain Key Stocks**: Include B-end vehicle OEMs and core suppliers in various components [6] - **AI Robot Main Line**: Focus on selected auto parts suppliers [6] - **Dividend & Good Pattern Main Line**: Focus on buses, heavy trucks, and two-wheelers [6] Weekly Automotive Sector Performance - The automotive sector's performance this week was mixed, with SW Commercial Cargo Vehicles performing the best [20] - The top five stocks in the automotive sector this week included Songyuan Safety, Jingwei Hengrun-W, Seres, New Spring Co., and Yadi Holdings [26] Valuation Metrics - This week, the PE (TTM) of SW Auto, SW Passenger Vehicles, SW Commercial Cargo Vehicles, and SW Auto Parts increased, while SW Commercial Passenger Vehicles' PE (TTM) decreased [34] - The global vehicle valuation PS (TTM) remained stable, with A-share vehicle valuations also stable [44]

Core Viewpoint - China National Heavy Duty Truck Group (China National Heavy Duty Truck) does not currently export to the U.S., focusing instead on markets in Africa, Southeast Asia, Central Asia, and the Middle East [2]. Group 1 - The company responded to an investor inquiry regarding the proportion of its business exported to the U.S. [2] - The company's heavy-duty truck products are exported through its subsidiary, Sinotruk International [2]. - The company has made breakthroughs in emerging markets but has not yet entered the U.S. market [2].

Market Overview - The commercial vehicle sector experienced a decline of 0.87% on October 14, with Yutong Bus leading the drop [1] - The Shanghai Composite Index closed at 3865.23, down 0.62%, while the Shenzhen Component Index closed at 12895.11, down 2.54% [1] Stock Performance - Notable stock performances in the commercial vehicle sector included: - Zhongtong Bus: Closed at 11.55, up 1.67% with a trading volume of 357,400 shares [1] - China National Heavy Duty Truck: Closed at 17.72, up 1.49% with a trading volume of 162,400 shares [1] - Yutong Bus: Closed at 28.90, down 2.73% with a trading volume of 205,800 shares [3] - The overall trading volume and turnover for the sector were significant, with Hanma Technology recording a turnover of 882 million yuan [1][3] Capital Flow - The commercial vehicle sector saw a net outflow of 473 million yuan from institutional investors, while retail investors contributed a net inflow of 395 million yuan [4] - Specific stock capital flows included: - Yutong Bus: Net outflow of 17.22 million yuan from institutional investors [4] - Zhongtong Bus: Net outflow of 20.29 million yuan from institutional investors [4] Summary of Key Stocks - The following stocks had notable capital flows: - Hanma Technology: Net inflow of 10.51 million yuan from institutional investors [4] - Foton Motor: Net inflow of 9.72 million yuan from institutional investors [4] - China National Heavy Duty Truck: Net outflow of 8.27 million yuan from institutional investors [4]

Core Viewpoint - During the recent National Day and Mid-Autumn Festival, China National Heavy Duty Truck Corporation (CNHTC) achieved significant sales success, securing over 6,700 orders across its three major brands: Shandeka, HOWO heavy trucks, and HOWO light trucks, providing a strong impetus for the fourth quarter [1][17]. Group 1: Shandeka Brand - Shandeka actively engaged in customer visits during the holiday period, reaching out to 5,000 new and existing customers to provide support and gather product improvement suggestions [6]. - The "All Attendance Shandeka Efficient King" promotional event was held nationwide, with 180 events conducted, resulting in over 800 orders due to exclusive holiday purchase incentives [8]. Group 2: HOWO Heavy Trucks - The "Double Festival Hundred Cities Linkage" campaign for HOWO heavy trucks was launched, offering special purchase incentives to assist truck owners in starting new operational journeys [10]. - A total of 326 events were held, generating 3,355 orders, showcasing the enthusiasm of truck owners despite the early autumn chill [12]. Group 3: HOWO Light Trucks - The HOWO light truck "Double Festival Celebration, Double Savings, Double Wealth Creation" campaign concluded successfully, achieving a notable result of 2,581 orders [14][15]. - The campaign effectively addressed core customer needs in purchasing, using, and maintaining vehicles, igniting enthusiasm among truck owners nationwide [17]. Group 4: Overall Performance - The combined efforts of CNHTC during the double festival resulted in over 6,700 orders, reflecting the strong brand reputation and solid product quality built over time [17]. - The company plans to continue focusing on user needs and enhancing products and services to strengthen its market position in the fourth quarter [17].

Core Insights - The article highlights the competitive landscape of the heavy truck market in China, focusing on the performance of major brands in September 2025, with a notable increase in the "Heavy Truck First Influence Index" score for leading brands [1][4]. Group 1: Market Performance - In September 2025, the total score of the "Heavy Truck First Influence Index" for nine major heavy truck brands reached 2185 points, a 9.6% increase from August's score of 1994 points, but a 4.8% decrease compared to the same period last year [1]. - The market is experiencing a shift as brands intensify their efforts to meet annual sales targets, indicating a strategic push during a traditionally slow season [4]. Group 2: Brand Rankings and Strategies - FAW Jiefang maintained its leading position with a robust marketing strategy, while China National Heavy Duty Truck Group and Dongfeng Commercial Vehicle followed closely, forming a strong first tier in the market [5]. - FAW Jiefang's marketing activities included multiple product launches and significant orders, such as 1858 units from the Eagle Energy series and participation in international exhibitions [8][9]. Group 3: Key Events and Developments - China National Heavy Duty Truck Group achieved significant milestones, including the launch of its first vehicle at the Philippines assembly plant and a successful promotional tour in Vietnam, resulting in over 800 orders [10]. - Dongfeng Commercial Vehicle showcased its technological advancements at major events, contributing to a nearly 30% increase in its influence index score for September [14]. Group 4: Emerging Brands - Dongfeng Liuzhou Motor's Chenglong brand demonstrated effective marketing strategies, including the delivery of 80 pure electric Chenglong H5 trucks, highlighting its commitment to the electric logistics market [17]. - The article notes the competitive dynamics among brands, with a focus on how they will continue to vie for market share as the peak season approaches [19].

Core Viewpoint - The 21st China International Fire Equipment Technology Exchange Exhibition showcases China's leading position in the fire emergency equipment sector, with China National Heavy Duty Truck Group (CNHTC) prominently featuring its products, particularly the SITRAK series, which dominates the exhibition with over 50% of the showcased vehicles [1][10]. Group 1: Exhibition Highlights - The exhibition, held in Beijing, is a significant event in Asia's fire safety industry, attracting global cutting-edge technologies and innovative solutions [1]. - CNHTC's specialized vehicles, particularly those based on the SITRAK chassis, accounted for more than 90 vehicles out of approximately 170 fire protection heavy trucks displayed, representing over 50% of the total [3][5]. Group 2: Product Features and Innovations - The SITRAK series includes various fire emergency vehicles such as water tankers, foam fire trucks, aerial fire trucks, airport fire trucks, and rescue vehicles, designed to meet diverse emergency scenarios [5][7]. - The SITRAK chassis has undergone significant upgrades, including the transition from EGR to Hi-SCR technology for engines, enhancing reliability, economy, and lightweight design [7]. - The interior of the SITRAK vehicles has been fully upgraded, featuring a 12.3-inch central control LCD screen, safety airbags, and various advanced safety and comfort features [7]. Group 3: Market Position and Brand Influence - SITRAK, a high-end heavy truck brand created in collaboration with Germany's MAN in 2009, has established a strong market presence in over 50 countries and regions [5]. - The brand has achieved a market share of over 250,000 units in the past decade, leading the high-end heavy truck industry in China [5][10]. - CNHTC's commitment to high-end fire emergency equipment is evident in its extensive R&D capabilities and market competitiveness, aiming to elevate China's fire safety equipment to international standards [10]. Group 4: After-Sales Support - SITRAK offers comprehensive after-sales services, including unconditional on-site service, exclusive binding services, extended warranties, regular inspections, and lifetime technical support to meet user operational needs [8].

Core Insights - The 21st China International Fire Equipment Technology Exchange Exhibition was held in Beijing, showcasing advanced technologies and innovative solutions in the fire safety sector [1] - China National Heavy Duty Truck Group (CNHTC) emerged as a focal point of the exhibition, with over 50% of the displayed products being specialized vehicles based on CNHTC chassis, highlighting its dominant position in the fire emergency equipment industry [1] Company Overview - CNHTC is recognized as a leader in high-end heavy-duty trucks in China, offering products characterized by high reliability, economic efficiency, comfort, safety, and intelligence, which are well-received both domestically and internationally [1] - The exhibition featured approximately 170 fire protection heavy-duty trucks, with over 100 vehicles based on CNHTC's Shandeka and HOWO fire truck chassis, accounting for over 60% of the total [2] Product Range and Innovation - The showcased vehicles included various models such as water tank fire trucks, foam fire trucks, aerial fire trucks, airport fire trucks, and rescue vehicles, catering to diverse emergency scenarios [2] - CNHTC's products are designed to meet international high-end product standards while being tailored to domestic fire emergency scenarios, establishing them as exemplary high-end fire equipment [2] - The company has developed a comprehensive matrix of fire emergency products, applicable in critical areas such as urban firefighting, forest firefighting, airport firefighting, and petrochemical firefighting, with vehicle tonnage ranging from 12 tons to 55 tons and engines capable of reaching up to 680 horsepower (500 kW) [2] Safety and Performance Features - The vehicles are equipped with a transmission system tailored for domestic road conditions, along with comprehensive safety features including electronic brakes, hydraulic retarders, and driver airbags, ensuring safety and efficiency in firefighting operations [2]

Market Overview - The commercial vehicle sector experienced a decline of 1.35% on October 13, with Jianghuai Automobile leading the drop [1] - The Shanghai Composite Index closed at 3889.5, down 0.19%, while the Shenzhen Component Index closed at 13231.47, down 0.93% [1] Stock Performance - Key stocks in the commercial vehicle sector showed mixed performance, with Jinlong Automobile rising by 4.74% to a closing price of 13.49 [1] - Jianghuai Automobile fell by 2.89% to a closing price of 50.39, with a trading volume of 534,300 shares and a transaction value of 2.682 billion [2] - Other notable declines included Foton Motor down 2.87% and JMC down 2.45% [2] Capital Flow - The commercial vehicle sector saw a net outflow of 474 million from institutional investors, while retail investors contributed a net inflow of 310 million [2] - The capital flow data indicates that retail investors were more active in the market despite the overall decline in the sector [2] Individual Stock Capital Flow - Jinlong Automobile had a net inflow of 53.38 million from institutional investors, while it faced a net outflow of 79.41 million from speculative funds [3] - Jianghuai Automobile experienced a significant net outflow of 459.86 million from institutional investors, indicating a lack of confidence among larger investors [3] - The data shows that retail investors were more favorable towards stocks like Ankai Bus, which had a net inflow of 472.44 million [3]

Investment Rating - The investment rating for the automotive and parts industry is maintained as Neutral [5] Core Insights - The report anticipates that competitive domestic brands and new forces in intelligent driving technology will continue to expand their market share by 2025 [3][15] - The report suggests ongoing attention to humanoid robotics, Huawei's supply chain, Xiaomi's supply chain, T-chain, and intelligent driving industry companies [3][15] - The expected impact of tariff fluctuations on certain export chains in the automotive parts sector is considered minimal [2][14] Summary by Sections Weekly Insights - Figure AI has officially launched the Figure 03 humanoid robot, which is expected to have strong mass production certainty, with a target annual production capacity of 12,000 units in its first phase [12] - The collaboration between Sairus and ByteDance's Volcano Engine aims to accelerate the development of the domestic robotics industry [13] - Tesla's Cybercab prototype has entered the collision testing phase, indicating readiness for mass production by 2026 [14] Sales Tracking - In September, the wholesale sales of passenger cars reached 2.77 million units, a year-on-year increase of 11%, while retail sales were 2.24 million units, up 6% year-on-year [19][22] Market Performance - The automotive sector underperformed compared to the CSI 300 index, with a decline of 1.5% [26][28] - The passenger vehicle and automotive parts sectors showed weaker performance, with the automotive parts sector experiencing a significant drop of 2.45% [26][30] Key Company Announcements - Sairus announced a cooperation framework with ByteDance to enhance the application of AI in the automotive industry [39] - BYD reported a sales figure of 396,300 units in September, a year-on-year decrease of 5.5% [43] - SAIC Motor's sales in September reached 439,800 units, a year-on-year increase of 40.4% [45]

Core Insights - The "Light Truck First Influence Index" for major domestic light truck brands reached a total score of 1403 in September 2025, marking a 7.2% increase from August 2025 and a 0.6% increase year-on-year from September 2024 [1][3]. Brand Rankings - The top three brands in the "Light Truck First Influence Index" for September 2025 are: 1. JAC 1 Truck with a score of 297 2. Dongfeng Light Truck with a score of 236 3. FAW Jiefang Light Truck with a score of 224 [2][15]. Market Trends - The light truck market showed signs of recovery in September, with increased marketing activities from various brands, leading to a natural rise in scores [3][6]. - New products and electric vehicles emerged as the biggest trends, with significant visibility during the "September 3rd Military Parade" [3]. Key Events and Product Launches - JAC 1 Truck launched the L9 PLUS version, featuring a new generation of National VI engine with 170 horsepower and 450 Nm torque, emphasizing performance, reliability, and comfort [7]. - The launch of the Farizon Star Intelligent F3E aimed to address key pain points in urban logistics, boasting a range of 360 kilometers and fast charging capabilities [10]. - China National Heavy Duty Truck (CNHTC) signed a contract for 100 units of HOWO electric light trucks, enhancing their market presence in urban and intercity logistics [12]. - Qingling Motors partnered with Yunwei Hydrogen Energy to promote 300 units of hydrogen fuel cell refrigerated trucks, marking a significant step in the commercialization of hydrogen energy in logistics [12]. Competitive Landscape - JAC 1 Truck maintained a clear lead in the rankings, while Farizon Light Commercial Vehicles moved up three places to fourth [14][20]. - Dongfeng Light Truck continued to hold the second position, actively engaging in promotional activities including a self-produced micro-drama [18]. - FAW Jiefang Light Truck retained its third position, launching a live event to enhance brand engagement [20]. Future Outlook - As the light truck market continues to recover, brands are expected to introduce more innovative products and marketing strategies in October 2025 [21].