CHINA DRAGON SECURITIES·2025-05-12 10:55Investment Rating - The report maintains a "Recommended" investment rating for the automotive industry [2]. Core Viewpoints - Geely plans to fully acquire Zeekr, aiming for internal resource integration to address the current market elimination phase, focusing on maximizing resource utilization [5][15]. - The privatization of Zeekr is expected to enhance operational efficiency and reduce related transactions, allowing Geely to consolidate its supply chain and improve procurement collaboration [5][15]. - The automotive financial companies' reserve requirement ratio has been reduced from 5% to 0%, which is anticipated to stimulate automotive consumption demand [16][17]. - The report highlights the significant sales performance of new energy vehicles, with retail sales reaching 99.12 million units in March 2025, reflecting a year-on-year increase of 38.78% [58]. Summary by Sections Industry News - Geely's acquisition of Zeekr is a strategic move to enhance operational efficiency during a market consolidation phase [5][15]. - The reduction of the reserve requirement ratio for automotive financial companies is expected to lower financing costs and boost consumer demand [16]. - Partnerships such as the one between Pony.ai and Uber for deploying Robotaxi services in the Middle East are noted as significant developments in the industry [17]. Market Performance - The automotive sector outperformed the Shanghai and Shenzhen 300 Index, with a weekly increase of 2.03% from May 6 to May 9, 2025 [33]. - The report indicates that the price-to-earnings ratio (PE) for the automotive sector is currently at 26.1, showing a decrease from the previous week [41]. Data Tracking - In March 2025, retail sales of passenger vehicles reached 193.74 million units, marking a year-on-year increase of 14.25% [46]. - The penetration rate of new energy vehicles in retail sales reached 51.2%, indicating a growing trend towards electric vehicles [58]. - The report also notes that the sales of heavy trucks decreased by 3.69% year-on-year in March 2025, reflecting ongoing challenges in the freight market [79].