Yin He Zheng Quan·2025-08-19 08:40Investment Rating - The report maintains a "Recommended" rating for the automotive industry [4]. Core Insights - The automotive market in July showed strong terminal demand despite entering the traditional off-season, with a year-on-year increase in sales [9][10]. - The penetration rate of new energy vehicles (NEVs) in domestic passenger cars has reached a historical high, indicating a positive trend for future growth [9][10]. Summary by Sections 1. Biweekly Update - In July, the automotive production was 2.591 million units, a year-on-year increase of 13.3%, while sales were 2.593 million units, up 14.7% year-on-year [9]. - Domestic sales of passenger cars reached 2.018 million units, with a year-on-year increase of 12.6% [9]. - The NEV penetration rate in July was 54.5%, reflecting a recovery to levels seen in September-October 2024 [10]. 2. Market Review - The automotive sector's performance was ranked 10th among 30 industries, with a biweekly increase of 5.64% [11]. - The best-performing sub-sectors included motorcycles and others, with a biweekly increase of 16.76% [11][15]. 3. Industry News - The report highlights the reintroduction of vehicle replacement subsidies in regions like Gansu and Guangxi, which is expected to support domestic demand [9]. - The report anticipates continued growth in NEV sales, driven by new model launches and a weakening sales momentum for fuel vehicles [10]. 4. Investment Recommendations - Recommended stocks include BYD and Li Auto for complete vehicles, and Huayu Automotive and Bertel for components [6]. - The report also suggests investing in companies involved in the human-robot industry chain, such as Top Group and Sutech [6].