Soochow Securities·2025-08-18 08:59Investment Rating - The report maintains a positive outlook on the automotive sector, suggesting an increase in investment weight towards automotive dividend style configuration for the second half of 2025 [3][5]. Core Insights - The automotive sector is at a crossroads, with the end of the electric vehicle (EV) dividend and the dawn of automotive intelligence. The report suggests that structural opportunities may arise in the second half of 2025 [3][5]. - The report highlights significant partnerships and collaborations, such as the upgrade of the partnership between Xiaopeng and Volkswagen, which will enhance their technology strategy across a broader market [2][3]. - The report anticipates a strong demand for passenger vehicles due to the implementation of scrapping and replacement policies, projecting a retail sales forecast of 23.8 million units in 2025, a year-on-year increase of 4.6% [50][58]. Summary by Sections Weekly Review - In the first week of August, the total number of compulsory insurance for passenger vehicles was 375,000 units, reflecting a week-on-week decrease of 18.8% but an increase of 3.6% compared to the previous month [2][49]. - The best-performing sub-sectors included motorcycles and auto parts, with respective increases of 6.9% and 3.5% [2][3]. Market Performance - The A-share automotive sector ranked 6th in performance this week, while the Hong Kong automotive sector ranked 12th [7][9]. - The report notes that the motorcycle sector continues to outperform other segments within the automotive industry [15][20]. Company Performance - Key companies such as Geely Automobile reported a quarterly revenue of 77.7 billion yuan for Q2 2025, with a year-on-year increase of 28.4% [2][3]. - The report also mentions strategic collaborations, such as Junsheng Electronics partnering with leading intelligent driving algorithm company Momenta [2][3]. Future Outlook - The report predicts that the penetration rate of new energy vehicles will reach 56.4% by 2025, with total sales of new energy passenger vehicles expected to be 1.343 million units [54][58]. - The report emphasizes the importance of domestic and international demand, forecasting a 15% growth in domestic sales and a 20% growth in export sales for 2025 [58].