KAIYUAN SECURITIES·2025-10-11 13:01Investment Rating - The investment rating for the automotive industry is "Positive (Maintain)" [1] Core Insights - The automotive sector is experiencing robust demand, particularly in the high-end luxury passenger vehicle market, with expectations for performance growth as product matrices expand [7] - Chinese automakers are gaining significant market share in Europe, with nearly 10% in the hybrid vehicle market and over 9% in the electric vehicle market, indicating strong competitive pressure on traditional manufacturers [16] - The report highlights a decline in vehicle imports, with a 40.6% year-on-year decrease in August 2025, reflecting potential challenges in the market [17] Industry News - During the National Day holiday, Hongmeng Zhixing's entire vehicle lineup achieved over 48,500 pre-orders, with the new Wanjie M7 model accounting for over 31% of total orders [5][13] - Xpeng Motors is set to announce significant breakthroughs in physical AI at its upcoming AI Technology Day, which could enhance its competitive edge in the market [15] - The Hong Kong Stock Exchange has reviewed Seres' application for an H-share listing, indicating potential growth opportunities for the company [14] Market Performance - The automotive sector underperformed the broader market, with the Shanghai and Shenzhen 300 index declining by 0.51% and the automotive sector falling by 1.48%, ranking 26th among A-share industries [6][22] - The commercial vehicle index saw a 3.01% increase, led by Jinlong Automobile and Yutong Bus, while the passenger vehicle index decreased by 1.39% [6][27] Investment Recommendations - For passenger vehicles, the report recommends investing in Jianghuai Automobile and Seres, with Geely Automobile identified as a beneficiary [7] - In the auto parts sector, companies like Desay SV and Zhejiang Xiantong are recommended due to their growth potential amid industry changes [7]