Group 1 - The automotive stocks are experiencing a downturn, with GAC Group down 3.02% at HKD 3.85, Li Auto down 2.66% at HKD 65.75, and Xpeng Motors down 2.05% at HKD 73.9 [1] - According to the China Passenger Car Association, retail sales of narrow passenger vehicles are projected to be approximately 2.225 million units in November 2025, representing a year-on-year decline of 8.1% and a month-on-month decrease of 1.1%, marking the first year-on-year negative growth in retail sales for the automotive market in 2023 [1] - From December 1 to 7, retail sales in the passenger car market reached 297,000 units, a year-on-year decrease of 32% compared to the same period last year and an 8% decline compared to the previous month [1] Group 2 - CITIC Securities believes that the Central Economic Work Conference emphasizes the importance of domestic demand, aiming to build a strong domestic market and optimize the implementation of the "two new" policies, with a clear indication that the national subsidy policy will continue into 2026 [1] - Recent data shows that leading automotive companies are experiencing weaker month-on-month sales, and the anticipated "tail effect" from year-end stocking has not materialized, with some regions suspending trade-in subsidies, leading to low market sentiment [1] - The firm remains optimistic about the high-end development of domestic passenger vehicles, a strong new vehicle cycle, and the overseas expansion of leading new energy vehicle companies [1]