Southwest Securities·2025-05-19 04:53Investment Rating - The report maintains an "Outperform" rating for the automotive industry as of May 18, 2025 [1] Core Insights - The automotive industry is experiencing a positive retail trend, with passenger car retail sales reaching 574,000 units from May 1 to May 11, 2025, representing a year-on-year increase of 12% and a month-on-month increase of 34% [7][61] - The cumulative retail sales for the year have reached 7.446 million units, showing an 8% year-on-year growth [61] - The report highlights the significant impact of the "old-for-new" vehicle subsidy policy, with applications exceeding 10 million since its implementation in 2024, and 3.225 million applications recorded by May 11, 2025 [7][48] - The report emphasizes advancements in smart vehicles, particularly the launch of Horizon's L2 urban assisted driving system, which is expected to enhance vehicle computing platforms [7][64] Summary by Sections Passenger Vehicles - Retail sales for passenger vehicles from May 1 to May 11, 2025, were 574,000 units, up 12% year-on-year and 34% month-on-month [61][62] - Cumulative wholesale for the year reached 8.932 million units, with a 12% year-on-year increase [62] - Key companies to watch include BYD, Geely, Xpeng, SAIC, Changan, GAC, and Leap Motor [62] New Energy Vehicles - Retail sales of new energy passenger vehicles reached 294,000 units from May 1 to May 11, 2025, marking a 32% year-on-year increase [63] - The retail penetration rate for new energy vehicles is 51.3%, with cumulative sales of 3.618 million units for the year, reflecting a 35% year-on-year growth [63] - Recommended companies include BYD, Geely, Huayu Automotive, and others [63] Smart Vehicles - The report discusses the launch of Horizon's L2 urban assisted driving system, which will be mass-produced in September 2025 [64] - Companies with technological advancements in smart driving algorithms and sensors are highlighted, including BYD, Geely, and various component manufacturers [64] Heavy Trucks - In April, heavy truck sales were approximately 88,000 units, with a year-on-year increase of 6.5% [11][65] - The report notes a significant rise in new energy heavy truck sales, which reached 15,800 units, a 245% year-on-year increase [11][65] - Companies to monitor include Weichai Power, China National Heavy Duty Truck Group, and Tianrun Industrial [65] Robotics - The report mentions the "Digital China Construction 2025 Action Plan," which aims to enhance AI applications and develop intelligent manufacturing equipment [66] - Companies involved in humanoid robotics and AI technology are recommended, including Top Group, Sanhua Intelligent Controls, and others [66]