Minsheng Securities·2025-05-18 08:25Investment Rating - The report maintains a positive investment rating for the automotive and automotive parts industry, highlighting strong performance and growth potential in various segments [5]. Core Insights - The automotive sector is experiencing a robust recovery, with passenger car sales reaching 454,000 units in the second week of May 2025, reflecting a year-on-year increase of 4.9% and a month-on-month increase of 7.1% [1][41]. - The report emphasizes the acceleration of intelligent and electric vehicle adoption, with a notable increase in new energy vehicle sales, which reached 226,000 units, marking a year-on-year growth of 16.0% [1][41]. - The report identifies key investment opportunities in companies such as BYD, Geely, and XPeng, which are positioned to benefit from the ongoing trends in smart and electric vehicles [3][10]. Summary by Sections Weekly Insights - The report discusses the resonance between domestic and international markets, particularly in the context of embodied intelligence and robotics, with significant advancements in humanoid robot technology [2][8]. - It highlights the importance of new vehicle launches and the impact of government policies on stimulating demand, particularly through trade-in incentives for older vehicles [10][41]. Market Performance - The automotive sector outperformed the broader market, with the A-share automotive sector rising by 1.91% from May 12 to May 16, 2025, surpassing the Shanghai Composite Index's increase of 1.23% [1][31]. Data Overview - Passenger car sales data for May 2025 shows a significant recovery, with new energy vehicle penetration reaching 49.8%, indicating a strong shift towards electric vehicles [1][41]. Key Companies - The report recommends a focus on companies with strong fundamentals and innovative capabilities, including BYD, Geely, XPeng, and others, as they are expected to lead the market in the transition to smart and electric vehicles [3][10][18].