CHINA DRAGON SECURITIES·2025-07-06 13:37Group 1 - The automotive sector has shown significant excess returns driven by smart driving and robotics, with the automotive index rising by 8.91% as of H1 2025, outperforming the CSI 300 index by 8.88 percentage points [7][16][20] - The passenger vehicle market is expected to accelerate its convergence, supported by policies like vehicle trade-in, with a retail sales volume of 8.82 million units in the first five months of 2025, reflecting a year-on-year increase of 9.2% [27][35] - Domestic automakers are rapidly expanding overseas, with a two-digit growth in passenger vehicle exports in early 2025, particularly in hybrid models, and a focus on markets like Southeast Asia and Latin America [50][54][60] Group 2 - The L2 and L4 autonomous driving segments are set to see significant growth, with an expected sales volume of 5.5 million mid-to-high-level autonomous vehicles in 2025, achieving a penetration rate of 22.9% [7][66] - The human-shaped robot sector is experiencing marginal changes, with leading companies like Tesla and Figure AI actively deploying robots in industrial settings, which may enhance their capabilities and accelerate mass production [7][63] - Investment recommendations highlight key players such as BYD, Great Wall Motors, and Geely in the passenger vehicle market, as well as leading smart driving companies like Seres and XPeng Motors [8][10][60]