Core Viewpoint - Chinese automotive sales in Europe have surged, with a 1.9-fold increase in July, reaching 59,363 units, despite impending high tariffs on electric vehicles (EVs) from the EU in October 2024 [2][5]. Group 1: BYD's European Strategy - BYD plans to establish over 1,000 stores across 32 European countries by the end of 2025, aiming to double this number to 2,000 by 2026 [4]. - BYD's sales in Europe for the first half of 2025 are projected to reach 70,500 units, a 3.1-fold increase compared to the same period last year [4]. Group 2: Overall Chinese Automotive Performance - In July, the overall sales of Chinese automobiles in Europe increased by 1.9 times year-on-year, with 116 Chinese automotive and parts suppliers participating in the Munich International Motor Show, a 1.5-fold increase from two years ago [5][7]. - The share of plug-in hybrid vehicles (PHVs) in total sales reached a record high of 9.7% in July, driven by a shift in export focus to vehicles not subject to the new tariffs [7]. Group 3: EU Tariff Impact and Market Dynamics - The EU plans to impose an additional tariff of up to 35.3% on Chinese pure electric vehicles starting October 2024, on top of the existing 10% tariff, with BYD facing a 27% tariff [7]. - Despite these tariffs, Chinese automotive sales continue to grow, attributed to the increased export of PHVs [7]. Group 4: Global Market Position - China's automotive exports surpassed those of the U.S. in 2021, Germany in 2022, and Japan in 2023, with projections to reach 6.7 million units by 2025, double that of Germany [8]. Group 5: EU Regulatory Challenges - The EU's stringent regulations aimed at promoting electric vehicles have led to excessive investments by European automakers, negatively impacting their performance and benefiting Chinese EV manufacturers and Tesla [10]. - Concerns over potential subsidies for BYD's electric vehicle factory in Hungary have prompted the EU to initiate an investigation [10].

Group 1 - Deutsche Bank reports that Geely Automobile's (00175) plug-in hybrid vehicle, the Galaxy A7, has been officially launched with a price range of 82,000 to 118,000 RMB, which is over 10% lower than the pre-sale price [1] - The bank has raised its net profit forecast for 2025 by 6.7% and for 2026 by 1%, based on an upward adjustment of "other income" expectations and a 2% increase in sales forecasts [1] - The target price for Geely has been increased from 23 HKD to 25 HKD, maintaining a "buy" rating [1] Group 2 - The report indicates that the Galaxy A7 has superior body length and wheelbase compared to competing models such as BYD's (002594) Qin L DM-i and Seal 06 DM-i, and offers a more advanced intelligent cockpit system (Flyme Auto) [1] - Monthly sales for the Galaxy A7 are expected to reach 10,000 units, as competing models have monthly sales of approximately 11,900 to 12,000 units [1] - Geely's Galaxy series is set to launch five new models within the year, with total sales for the Galaxy series expected to increase by 148% year-on-year to 1.23 million units by 2025 [1]