Investment Highlights - The core point of the article is the performance of the automotive sector, with a notable increase in compulsory insurance registrations, reaching 450,000 units in the second week of September, reflecting a week-on-week increase of 24.9% and a month-on-month increase of 4.9% [10][50] - The automotive sub-sectors showed varied performance, with SW automotive parts leading at +4.3%, followed by SW automotive at +3.0%, and SW passenger vehicles at +1.9%. In contrast, SW commercial passenger vehicles and SW commercial cargo vehicles saw declines of -0.5% and -1.2%, respectively [10][11] Industry Changes - Key industry developments include the official launch dates for several new models: Li Auto's i6 on September 26, the launch of the Xiangjie S9T with 10,000 pre-orders in 72 hours, and Geely's Galaxy M9 with over 23,000 pre-orders [4][10] - Additionally, Xiaoma Zhixing announced its entry into the Singapore market, partnering with ComfortDelGro Corporation to deploy autonomous vehicles and services, while its Robobus received Belgium's first federal-level L4 autonomous driving test license [4][10] Investment Opportunities - Three main investment themes are identified: 1. **AI Smart Vehicle Line**: Focus on the Robotaxi industry chain, including integrated models like Tesla and XPeng, and technology providers such as Horizon Robotics and Baidu [6][12] 2. **AI Robotics Line**: Emphasis on preferred auto parts suppliers like Top Group and Junsheng Electronics [12] 3. **Dividend & Good Pattern Line**: Highlighting opportunities in buses (Yutong Bus), heavy trucks (China National Heavy Duty Truck Group), and two-wheelers (Chunfeng Power) [7][12] Market Performance - The automotive sector's A-H shares performed well, with automotive parts, particularly robotics, showing the best gains, led by Junsheng Electronics and Xinquan [5][11] - The overall market sentiment remains positive, with new car orders being a key driver for growth, despite some mixed performance in passenger vehicle demand [5][11] Sales Data - The total number of passenger vehicle insurance registrations reached 450,000 units, with new energy vehicles accounting for 269,000 units, reflecting a week-on-week increase of 23.1% and a penetration rate of 59.7% [50][52] - The forecast for 2025 anticipates a retail sales volume of 23.7 million units, representing a year-on-year growth of 4.1% [51][52]

Core Viewpoints - The AI era emphasizes "product supremacy" rather than "traffic supremacy," marking a shift from the PC and mobile internet eras where user scale and network effects were paramount [4][14][25] - AI agents are expected to emerge across various subfields, focusing on task complexity and revenue generation rather than user numbers [4][25] Investment Opportunities in AI Smart Vehicles - AI smart vehicles represent a significant investment opportunity, potentially greater than that seen during the internet era, with China expected to innovate at the foundational level, leading to globally competitive companies [6][17] - The Robotaxi industry chain is identified as the best investment theme for the next five years, with various categories of companies involved, including integrated models, technology providers, and traditional ride-hailing services transitioning to smart vehicles [8][19][20] Valuation Methods for AI Smart Vehicles - The valuation approach for AI smart vehicles may differ from previous eras, with a focus on "smart agent revenue valuation," where the revenue potential is determined by the number of smart agents and their capability levels [7][20] Key Investment Targets in the AI Smart Vehicle Industry Chain - The investment landscape includes various categories such as integrated models (e.g., Tesla, Xiaopeng), technology providers (e.g., Horizon Robotics, Baidu), traditional ride-hailing companies (e.g., Didi), vehicle manufacturers (e.g., BAIC BluePark), and core hardware suppliers (e.g., chip manufacturers) [8][19][21][10] - The Robovan industry chain is also highlighted as a significant opportunity, with lower technical barriers and faster commercialization potential compared to Robotaxi [9][21] Consumer Market for L4 Smart Vehicles - The consumer market for L4 smart vehicles is expected to emerge later than the B2B market but could present substantial investment opportunities once it gains traction [10][21]

Investment Rating - The report maintains a positive outlook on the automotive sector, with a focus on the growth potential of passenger vehicles and related components [1]. Core Insights - The automotive sector is experiencing a notable increase in demand, with passenger car insurance registrations reaching 450,000 units in the second week of September, reflecting a week-on-week increase of 24.9% and a month-on-month increase of 4.9% [2][47]. - Key developments include the successful launches of several new models, such as the Ideal i6, which is set to officially launch on September 26, and the Galaxy M9, which has already received over 23,000 pre-orders [2][3]. - The report identifies three main investment themes: AI smart vehicles, AI robotics, and sectors benefiting from favorable market conditions, such as buses and heavy trucks [3]. Summary by Sections Market Performance - The automotive sector ranked third in A-shares and second in Hong Kong stocks for the week, indicating strong market performance [7]. - The automotive components sector showed the best performance within the automotive industry, with a notable increase in stocks like Yanfeng Automotive and Xinquan [15][24]. Sales and Demand Forecast - The report forecasts a total retail sales volume of 23.7 million units for 2025, representing a year-on-year growth of 4.1% [48]. - The penetration rate of new energy vehicles is expected to reach 56.6% by 2025, with sales projected to be 1.34 million units [49]. Investment Opportunities - The report highlights key investment opportunities in the automotive sector, particularly in the AI smart vehicle supply chain, including companies like Tesla, Xiaopeng Motors, and Horizon Robotics [3]. - The report also emphasizes the importance of component suppliers, such as Desay SV and Junsheng Electronics, in the growth of the automotive sector [3]. Policy and Market Trends - The report notes that government policies, such as the expansion of vehicle scrappage subsidies, are expected to support domestic demand in 2025 [48][56]. - The report anticipates a continued recovery in the bus market, with domestic sales expected to grow by 15% in 2025 [56].

Core Insights - The article emphasizes the evolution and investment opportunities in the automotive industry, particularly focusing on the transition towards electric vehicles, automation, and robotics. The team aims to leverage these trends to identify potential investment opportunities and risks in the market [4][7][15]. Investment Themes AI Smart Vehicles and Industry Chain - The team believes that AI smart vehicles represent a revolutionary application in the physical world, with B-end (e.g., Robotaxi) leading the way, followed closely by C-end consumer adoption [5][7]. Robotics and Industry Chain - The robotics sector is at a critical stage of technological breakthroughs and deep integration with industrial applications. The focus is on Tesla and leading domestic robotics companies, emphasizing core technological innovation and application scenarios [11][15]. Electrification/Globalization of Complete Vehicles - The strategy involves a dual approach: a slow, in-depth focus on globalization and a fast, responsive strategy to capture opportunities in the ongoing price wars in the electrification phase [18][21]. Quality Components Investment Theme - The formula for growth in quality component companies is identified as "good track + good pattern + good customers." The rise of quality domestic auto parts companies is expected to continue, with a focus on overseas expansion [26][27]. Commercial/Motorcycle Investment Theme - The commercial vehicle sector is seen as recovering from a low cycle, with potential for sales and profit growth driven by overseas expansion. The heavy truck industry is expected to enter a significant growth phase after a prolonged downturn [29][31].