Investment Rating - Investment rating: Positive (maintained) [2] Core Views - The European electric vehicle market shows a significant recovery trend in 2025, with April sales of 211,000 units, a year-on-year increase of 30.7% and a penetration rate of 26.3%, up by 6.4 percentage points [6][15] - The EU Parliament approved amendments to carbon emission assessments, delaying the tightening of targets but maintaining the overall trend towards stricter regulations [44][45] Summary by Sections 1. Electric Vehicle Sales in Europe - In April 2025, Germany's BEV sales reached 46,000 units, up 53.5% year-on-year, with a penetration rate of 18.8% [16] - In the UK, BEV sales were 25,000 units, up 8.1% year-on-year, with a penetration rate of 20.4% [22] - France's BEV sales were 26,000 units, up 2.3% year-on-year, with a penetration rate of 18.4% [27] - Sweden's BEV sales reached 9,000 units, up 25.8% year-on-year, with a penetration rate of 35.2% [30] - Norway's BEV penetration rate hit 97%, with sales of 11,000 units, up 8.9% year-on-year [34] - Italy's BEV sales were 7,000 units, up 105.2% year-on-year, with a penetration rate of 4.8% [36] - Spain's BEV sales reached 7,000 units, up 77.9% year-on-year, with a penetration rate of 6.9% [40] 2. Policy Developments - The German coalition agreement includes multiple measures to promote electric vehicle development, such as increasing tax incentives and supporting charging infrastructure [17][18] - The UK government adjusted ZEV sales targets to provide more flexibility and reduced penalties for non-compliance, while maintaining the 2030 ban on petrol and diesel cars [23] 3. Investment Recommendations - Recommended stocks in lithium batteries include CATL, Yiwei Lithium Energy, and Xinwangda, with beneficiaries including Zhongxin Innovation and Guoxuan High-Tech [45] - For lithium materials, recommended stocks include Hunan Youneng and Huayou Cobalt, with beneficiaries like Fulin Precision and Wanrun New Energy [45][46] - Beneficiaries in lithium battery structural components include Keda Li and Minglida [46]