BYD(SZ:002594) Shenwan Hongyuan Securities·2025-10-28 12:52Investment Rating - The report indicates a positive outlook for the automotive industry, emphasizing the importance of "expanding domestic demand" and "high-quality development" as key support directions during the 14th Five-Year Plan period [1][4][7]. Core Insights - The "14th Five-Year Plan" establishes a development framework for the automotive industry centered on domestic demand, technological innovation, green transformation, and open integration, which is expected to provide medium to long-term growth support for the industry [4][7]. - The policy focus for the automotive industry is anticipated to be on three aspects: stability (preventing excessive competition and restoring pricing systems), growth (promoting the expansion of the new energy vehicle and smart product markets through fiscal and industrial policies), and upgrading (advancing product and service upgrades) [1][4][5]. - Technological innovation is highlighted as a core task of the "14th Five-Year Plan," which will be crucial for achieving high-quality development in the automotive sector, emphasizing the need for self-research capabilities in key technology areas such as chips and algorithms [6][7]. - The green transition is reinforced as a significant direction, with expectations for the automotive industry to develop along multiple routes, including pure electric, hybrid, and hydrogen energy, while enhancing energy efficiency and performance [6][7]. Summary by Sections Section 1: Policy Direction - The report outlines that the automotive industry will benefit from policies aimed at stabilizing competition, promoting growth, and upgrading products and services, reflecting a trend of policy support and structural optimization [1][4][5]. Section 2: Technological Innovation - Emphasis is placed on the need for the automotive industry to strengthen its independent research and development capabilities in critical technology areas, which is essential for achieving high-quality development [6][7]. Section 3: Green Transformation - The report indicates that the automotive industry is expected to advance in various green technologies, which will be a core driver for optimizing the industry structure and reducing energy consumption [6][7]. Section 4: International Cooperation - The ongoing promotion of open cooperation and the "Belt and Road" initiative is expected to bring new international opportunities for the automotive industry, with anticipated measures to relax foreign investment access and promote free trade zones [7].