CMS·2025-11-09 10:00Investment Rating - The report maintains a "Recommended" rating for the automotive industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [5]. Core Insights - The automotive industry experienced an overall decline of 1.6% during the week from November 2 to November 8, 2025, with significant drops in the passenger and commercial vehicle segments, which fell by 3.4% and 3.0% respectively [2][11]. - Xpeng Motors showcased its advancements in "physical AI" at its technology day, introducing the second-generation VLA large model and the humanoid robot IRON, which is expected to be mass-produced by the end of 2026 [1][25][28]. - The report highlights the performance of individual stocks, with notable gains for Haima Automobile (+50.0%), Weichai Power (+22.1%), and ST Meichen (+17.2%), while Hengshuai Co. (-20.8%) and Biaobang Co. (-20.0%) faced significant declines [3][16]. Market Performance Overview - The automotive sector's secondary segments saw a comprehensive decline, with automotive parts and services experiencing smaller drops of -0.2% and -0.4% respectively, while tire and dealership segments showed positive growth of +1.9% and +1.8% [2][11]. - The overall market indices for the week showed mixed results, with the Shanghai A index rising by 1.1% and the Shenzhen A index by 0.4%, contrasting with the automotive sector's decline [9]. Recent Developments - Xpeng announced its entry into the Robotaxi market, planning to launch three self-developed Robotaxi models in 2026, which will utilize the second-generation VLA model and feature advanced AI capabilities [28]. - BYD plans to launch its high-end brand "Yangwang" in the Middle East in early 2026, marking its expansion into the luxury vehicle market [24]. - The report notes the successful IPOs of autonomous driving companies, including WeRide and Pony.ai, which reflect growing investor interest in the sector [31].