BOCOM International·2025-04-10 11:00Industry Investment Rating - The automotive industry is rated as "Leading" [1] Core Insights - The automotive market showed signs of recovery in March, with retail sales of passenger vehicles increasing by 14.4% year-on-year, reaching 1.94 million units [4] - The penetration rate of new energy vehicles (NEVs) rose to 51.1% in March, with retail sales of NEVs recording 991,000 units, a year-on-year increase of 36.4% [4] - The report highlights the positive impact of trade shows and vehicle replacement policies on sales performance in April [4] Summary by Relevant Sections Sales Performance - In March, the retail sales of passenger vehicles in China reached 1.94 million units, marking a year-on-year increase of 14.4% and a month-on-month increase of 40.2% [4] - Domestic brands performed better than the overall market, with retail sales of 1.22 million units, a year-on-year increase of 31% [4] New Energy Vehicles - NEVs accounted for 51.1% of total retail sales in March, with sales of 991,000 units, reflecting a significant increase [4] - The cumulative retail sales of NEVs from January to March reached 2.42 million units, up 36.4% year-on-year [4] Export Trends - Total passenger vehicle exports in March were 391,000 units, with a year-on-year decrease of 8% but a month-on-month increase of 10% [4] - Exports of NEVs showed strong performance, with 143,000 units exported in March, representing 36.6% of total exports [4] Investment Recommendations - The report suggests focusing on quality stocks in the passenger vehicle sector, particularly BYD (1211 HK) and XPeng Motors (9868 HK), due to their strong growth potential [4]