9 October 2025 Asian Autos Chinese Autos: Proprietary survey 2025, Part 1. Stronger purchase intentions, Optimistic macro outlook; BYD ranked Top, Xiaomi Third Eunice Lee, CFA +852 2123 2606 eunice.lee@bernsteinsg.com Mika Fu +852 2166 4805 mika.fu@bernsteinsg.com Ethan Xu +852 2123 2634 ethan.xu@bernsteinsg.com Our proprietary survey of Chinese car buyers, 2025 edition. Since 2015, we have conducted an annual online survey to gauge Chinese consumer sentiment, car-buying intentions, brand preferences, and o ...

Core Insights - The departure of Guan Haitao, the CBO of Zeekr Technology Group, marks the end of a significant chapter in the company's rapid growth and branding success [1][7] - Guan Haitao's career is characterized by a successful transition from various industries, including 3C digital, internet, and fast-moving consumer goods, to the automotive sector [2] - Under his leadership, Zeekr achieved remarkable sales growth and brand recognition in the electric vehicle market, particularly in the luxury segment [4][5] Company Performance - In 2023, Zeekr delivered 118,000 vehicles, representing a year-on-year increase of 65% [5] - The company is projected to surpass 220,000 vehicles in 2024, with an impressive year-on-year growth of 87% [5] - Zeekr's average vehicle price is nearly 300,000 yuan, with the highest price reaching 900,000 yuan [5] Marketing Strategy - Guan Haitao implemented a unique marketing philosophy of "staying true while innovating," focusing on product marketing as a priority [5] - He successfully launched key models such as Zeekr 001, 007, and 009, establishing benchmarks in various market segments [5] - The brand leveraged celebrity endorsements to enhance its market presence, particularly in the ultra-luxury MPV segment [5] Industry Impact - Guan Haitao's tenure at Zeekr is seen as a case study in effective cross-industry transformation, contributing to the company's rapid ascent in the electric vehicle market [4][7] - His departure raises questions about talent retention and the ongoing value of cross-industry expertise in the competitive new energy vehicle sector [7]

Core Viewpoint - The article discusses the adjustments to the technical requirements for energy-saving new energy vehicles (NEVs) in China, particularly regarding the exemption from vehicle and vessel tax, which will take effect on January 1, 2026. The new regulations impose stricter standards for plug-in hybrid vehicles and maintain existing standards for pure electric vehicles [3][8]. Summary by Sections New Regulations Overview - The Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration have released new technical requirements for NEVs, which will be implemented starting January 1, 2026 [3]. - The new regulations increase the minimum electric range for plug-in hybrid vehicles from 43 kilometers to 100 kilometers [3][4]. Specific Vehicle Requirements - For pure electric buses, the minimum range remains at 200 kilometers, while plug-in hybrid buses must have a minimum electric range of 50 kilometers. Pure electric trucks must achieve a minimum range of 80 kilometers [4][5]. - The new regulations also set fuel consumption limits for energy-saving vehicles based on their weight, with specific thresholds for different seating configurations [6][7]. Historical Context and Policy Changes - Previous policies from 2012 and 2015 established tax incentives for energy-saving and new energy vehicles. The latest announcement replaces the 2024 regulations and introduces new standards for vehicle eligibility for tax exemptions [8]. - Vehicles that meet the new criteria will be automatically included in the updated directory for tax exemptions, while those that do not comply will need to be re-evaluated and re-registered [8].

Core Insights - The article discusses the upcoming 2025 High-Performance Lithium Battery Annual Conference and the latest announcements from the Ministry of Industry and Information Technology regarding new vehicle models, highlighting the trends in battery technology and vehicle types in the electric vehicle market [4][5]. Group 1: Conference Details - The 2025 High-Performance Lithium Battery Annual Conference will take place from November 18-20, 2025, at the JW Marriott Hotel in Shenzhen [4][11]. - The event is organized by High-Performance Lithium Battery and GGII, with various sponsors including Hymson and Dazhu Lithium Battery [4][11]. Group 2: New Vehicle Announcements - The latest announcement includes 111 new vehicle models, with 16 using ternary batteries and 95 using LFP batteries, indicating a growing preference for LFP technology [4][5]. - Among the new models, there are 64 pure electric vehicles and 47 hybrid/incremental models, with a notable introduction of 4 methane hybrid models from Geely [4]. Group 3: Battery Suppliers and Market Dynamics - CATL remains the leading battery supplier, supporting 54 new models, including 11 ternary battery models, while other suppliers like Honeycomb Energy and LG are also contributing [5]. - The competition among battery suppliers is intensifying, with companies like Zhongxin Innovation and Yiwei Lithium Energy gaining significant market share [5][6]. - The price of ternary battery models is decreasing, with Tesla's new MODEL Y+ expected to be priced around 280,000, featuring a range of 830 kilometers [5].

Core Insights - The promotional efforts by car manufacturers during the National Day and Mid-Autumn Festival have significantly decreased compared to previous years, indicating a shift in market dynamics and a reduction in "involution" competition [1][2][3] - There is a notable increase in demand for new energy vehicles (NEVs) in Cangzhou, a third-tier city, with sales of specific models like the Haobo HL showing strong performance despite the lack of cash discounts [1][3] Promotional Strategies - Car brands such as Huawei Hongmeng and Fangcheng Leopard are not offering cash discounts but instead providing limited-time benefits like vehicle upgrades and delivery gifts [2][3] - Several brands, including Li Auto and Xpeng, have announced National Day exclusive promotional policies, but actual consumer savings are minimal, often only 2000-3000 yuan compared to regular prices [2][3] Market Trends - The demand for NEVs is rising significantly, with more vehicles displaying green license plates observed in various locations [2][3] - Sales personnel are emphasizing the urgency of purchasing vehicles this year due to impending changes in tax policies and government subsidies, which could result in higher costs in the future [4][5] Policy Changes - The exemption of vehicle purchase tax for NEVs is set to continue until the end of 2027, with specific conditions for tax reductions outlined for purchases made in the coming years [5] - The process for applying for vehicle replacement subsidies has shifted to a "first come, first served" model through the Dongche Emperor app, with limited availability of qualification vouchers [6][7] Regional Developments - Various provinces, including Hebei, have adopted a "voucher" system for vehicle replacement subsidies, requiring consumers to act quickly to secure funding [6][7] - Some regions have paused their vehicle replacement subsidy policies earlier this year, but many have resumed with new funding and application processes [7]

Core Insights - OpenAI has launched GPT-5Pro and GPT-realtime-mini, emphasizing the trend towards lightweight and efficient AI models with strong multimodal interaction capabilities [1] - CloudWalk (云知声) has established itself as a significant player in the AI industry, leveraging its "chip-cloud integration" strategy and technological expertise [1] Group 1: Technological Advancements - CloudWalk's 0.5B parameter edge-side voice model, based on the Shanhai model distillation technology, is now operational in mass-produced vehicles from companies like Geely and Zhiji, demonstrating reduced hardware requirements and a response speed as low as 350ms [2] - The company has developed a comprehensive technology architecture consisting of "general large models - industry large models - edge-side lightweight models," which has earned it dual recognition with the "2025 AIEra Enterprise Innovation Award" and the "X Future Business Brand" award [2] Group 2: Financial Performance - In the first half of 2025, CloudWalk reported a 457% year-on-year increase in revenue from large model-related businesses, surpassing 100 million RMB, which now accounts for 24.4% of total revenue [3] - The edge-side voice model has established a presence across four major sectors: automotive, healthcare, transportation, and government, serving tens of millions of terminal devices [3] Group 3: Global Expansion - CloudWalk has partnered with the Nanning Municipal Government to establish an "ASEAN Headquarters Project," integrating edge-side voice models into Southeast Asia's transportation and cross-border healthcare scenarios [4] - The launch of GPT-5Pro validates the market potential for small voice models, while CloudWalk is proactively pursuing both localization and globalization strategies [4] - The company's technological approach reflects the innovative logic of Chinese AI enterprises, focusing on full-stack technical capabilities and differentiated competition through "large model technology downscaling and deep scene adaptation" [4]

Summary of New Spring Co., Ltd. Conference Call Company Overview - New Spring Co., Ltd. has undergone four stages: initial establishment, adjustment, expansion, and globalization, currently accelerating overseas capacity construction and binding with major overseas clients to achieve rapid growth and increased per-vehicle value [2][4] Key Points and Arguments - **Product Pricing and Value**: The average product price is expected to rise from 780 RMB per set in 2022 to approximately 1,000 RMB per set by 2024, with the overall value of interior components nearing 3,000 RMB [2][6] - **Client Base**: Major clients include Dongfeng, China National Heavy Duty Truck Group, Chery, Geely, and Tesla, with Tesla contributing significantly to overseas sales, which accounted for 7.28% in 2023 [2][7] - **Profitability**: The company maintains a stable profitability level with a net profit margin around 10% and a gross margin of approximately 20% [7] - **Market Growth**: The automotive interior and exterior market is driven by consumer upgrades, with the per-vehicle value expected to reach about 5,000 RMB by 2026, leading to an overall market size of 200 billion RMB [2][8] Industry Characteristics and Trends - **Market Concentration**: The global automotive interior and exterior market has low concentration, with major players like Yanfeng, Faurecia, and Adient leading the market. Domestic players like New Spring, Changshu Automotive Trim, and Ningbo Huaxiang are focusing on niche markets [9] - **Barriers to Entry**: High barriers for new entrants exist due to the difficulty of changing suppliers once established, ensuring the stability of current players [9] Future Development Directions - **Product Expansion**: New Spring aims to diversify its product line beyond dashboard assemblies to include components like seat backs, ceilings, and integrated cockpit products, which could significantly enhance per-vehicle value [4][12] - **Collaboration with Tesla**: As a key supplier for Tesla, New Spring is positioned to become a significant supplier of components for Tesla's humanoid robots, leveraging the commonality of parts between vehicles and robots [13] Conclusion - New Spring Co., Ltd. shows strong market competitiveness and clear growth potential, with expected significant increases in overseas revenue and overall performance as it expands into new product areas [14][15]

Group 1 - The global market experienced a "good start" to the fourth quarter during the National Day holiday, with a relatively stable internal and external environment, particularly in the technology sector [1][2] - Analysts predict that active funds may gather again post-holiday, leading to a potential "good start" for A-shares, with increased structural opportunities in the market [1] - The technology sector remains a core focus, as China's tech industry is at a critical breakthrough point, which may enhance the revaluation logic of Chinese assets [1] Group 2 - The A-share market welcomed its first trading day of the fourth quarter on October 9, supported by a positive external environment from overseas markets and resilient domestic consumption data during the holiday [2][3] - The National Foreign Exchange Administration reported that China's foreign exchange reserves increased by $16.5 billion to $333.87 billion by the end of September, indicating a stable economic outlook [3] - The average price of gold on the COMEX reached a historic high of over $4,060 per ounce, driven by increased global demand for safe-haven assets [4][8] Group 3 - The post-holiday period saw a surge in new fund issuances, with 23 funds launched on October 9 alone, indicating a potential influx of capital into the A-share market [5] - The automotive sector showed strong sales growth in September, particularly in the new energy vehicle segment, with companies like Seres and Great Wall Motors reporting significant year-on-year increases [5] - The humanoid robot sector has gained significant attention, with related stocks averaging an 83.6% increase this year, outperforming the Shanghai Composite Index [6] Group 4 - The State Council's five-year review of policies aimed at improving the quality of listed companies shows a 34.22% increase in the number of listed companies and a 46.92% increase in total market capitalization since the policy's implementation [7] - The technology sector now accounts for over 25% of the A-share market capitalization, surpassing traditional sectors like banking and real estate [7] - Major public fund institutions express confidence in the A-share market's stability and reasonable valuation, supporting a positive long-term outlook [7]

Group 1 - The overall automotive market in September showed a growth trend, with many companies reporting increased sales figures [1][2][3] - Sales of new energy vehicles (NEVs) are leading the growth, with companies like BYD and Geely achieving high growth through technological advancements [3][4] - The new Seres model, the Aito M7, launched on September 23, received over 40,000 pre-orders within 24 hours, indicating strong market demand [2] Group 2 - SAIC Motor Corporation achieved the highest sales in the industry with 440,000 vehicles sold in September, marking a year-on-year increase of 40.4% [2] - BYD's total sales reached 396,000 vehicles in September, with a significant overseas sales increase of 107% [3] - NIO reported a total delivery of 34,749 vehicles in September, reflecting a year-on-year growth of 64% [3] Group 3 - The competition between traditional automakers and new entrants is intensifying, with traditional companies accelerating their transition to electric vehicles while new players focus on niche market advantages [4] - Industry experts suggest that after the peak sales season, companies should prepare for a potential downturn in the first quarter of the following year [4]

Core Insights - The automotive industry is leveraging the National Day and Mid-Autumn Festival holidays to launch new models and attract customers, resulting in increased order volumes for dealerships [1][2][3] - Companies are implementing various promotional strategies, combining new vehicle launches with attractive pricing to stimulate consumer interest and drive sales [1][4][5] - The "trade-in" policy continues to boost new car consumption, making the holiday period a critical time for automakers to achieve their annual sales targets [1][7][8] New Model Launches - Over 70 new vehicles were launched in September, with significant attention on models like the Tesla Model Y L during the holiday period, which became a key attraction for consumers [2][3] - Dealerships are experiencing increased foot traffic and order volumes due to the strategic placement of new models in prominent locations within showrooms [2][3] Promotional Strategies - Automakers are employing various promotional tactics, such as cash discounts and trade-in subsidies, to lower the purchase threshold for consumers [4][5] - For instance, GAC Honda and SAIC Volkswagen are offering special cash vouchers and trade-in bonuses during the holiday period to incentivize purchases [4][5] Market Dynamics - The automotive market is witnessing a recovery in demand, supported by favorable policies and promotional activities, with production and sales figures showing significant year-on-year growth [7][8] - The "Golden September" and "Silver October" sales periods are expected to see a boost in customer traffic and sales volume, driven by holiday shopping and promotional events [8]