Investment Rating - The report maintains an "Overweight" rating for the automotive industry [4] Core Insights - July saw strong performance in the new energy vehicle (NEV) sector, with sales growth remaining high due to ongoing stimulus policies and increasing consumer demand [11][28] - Total vehicle sales in July reached 2.593 million units, a year-on-year increase of 14.7%. Cumulative sales from January to July amounted to 18.269 million units, reflecting a 12% year-on-year growth [11] - NEV sales in July were 1.262 million units, up 27.4% year-on-year, with a penetration rate of 48.7%. For the first seven months of 2025, NEV sales totaled 8.22 million units, marking a 38.5% increase year-on-year and a penetration rate of 45.0% [11] Summary by Sections Weekly Discussion - The automotive market continues to show positive momentum, with new model releases and sustained consumer purchasing demand contributing to a favorable market environment [11] Investment Strategy and Key Focus - The report suggests focusing on undervalued leading companies in the vehicle and parts sectors due to improving performance, as well as key players in the NEV electrification and intelligence sectors. Recommended companies include BYD, Changan Automobile, Geely, and Li Auto [2][28][31] - The report highlights opportunities arising from domestic substitution due to the "dual circulation" strategy, with companies like Lingdian Electric Control and Sanhua Intelligent Control being of particular interest [2][31] Market Review - The automotive sector experienced a weekly increase of 3.08%, ranking 9th among 31 sectors in the Shenwan classification. The sector outperformed the CSI 300 index, which saw increases of 1.70% [30][36] - In the sub-sectors, automotive services, parts, passenger vehicles, commercial vehicles, and motorcycles had varying weekly performance, with automotive services declining by 1.35% [30][32]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [2] Core Insights - Geely has launched the "Qianli Haohan" advanced intelligent driving system, which covers various models under its brand, aiming to enhance the driving experience across the country [1][10] - The "Qianli Haohan" system includes five versions (H1, H3, H5, H7, H9), with the H9 version featuring a fully redundant L3 level architecture for comprehensive driving scenarios [5][10] - The pre-sale prices for the 2025 models of the AITO M8 and M9 are set at 368,000 yuan and 478,000 yuan respectively, with the M9 model achieving significant sales milestones in the luxury segment [5][12] Investment Strategy and Key Focus - The report suggests focusing on undervalued leading companies in the vehicle and parts sectors due to performance improvements, as well as core targets in the new energy and intelligent vehicle sectors [6][11] - Recommended companies include BYD, Li Auto, and Top Group, each with a 20% weight in the investment focus [14] - The automotive sector is expected to rebound as economic conditions normalize and stimulus policies take effect, with production and sales likely to continue rising [11][13] Market Review - The automotive sector experienced a weekly increase of 3.08%, outperforming the CSI 300 index, which rose by 1.39% [7][14] - In the sub-sectors, automotive services and parts saw notable weekly gains of 2.21% and 5.00% respectively [7][14]

Investment Rating - The report suggests a focus on undervalued leading companies in the automotive sector due to performance improvement opportunities, particularly in the new energy and intelligent vehicle segments [3][13]. Core Insights - BYD has launched its "Universal Intelligent Driving Strategy," introducing the "Tian Shen Zhi Yan" technology matrix, which will equip all its models with advanced driving technologies, making high-level intelligent driving accessible to a broader audience [1][9]. - BYD has sold over 4.4 million vehicles equipped with L2 and above driving assistance, establishing the largest vehicle cloud database in China, and has the largest R&D team globally with over 110,000 engineers, including more than 5,000 dedicated to intelligent driving [2][11]. - The report emphasizes the potential for the automotive industry to rebound as economic conditions normalize and stimulus policies are implemented, with expectations for sustained growth in production and sales [13][17]. Summary by Sections 1. Intelligent Driving Technology - BYD's "Tian Shen Zhi Yan" includes three technology solutions: DiPilot 600, DiPilot 300, and DiPilot 100, catering to different vehicle models and price ranges [1][9]. - The DiPilot 100, equipped with advanced perception hardware and algorithms, aims to cover essential user scenarios [1][9]. 2. Investment Strategy and Focus - The report recommends focusing on leading companies in the automotive sector, particularly those with a first-mover advantage in new energy vehicles, such as BYD, Changan Automobile, Geely, and Li Auto [3][13]. - Key companies to watch include BYD (20%), Li Auto (20%), Top Group (20%), Desay SV (20%), and Shangsheng Electronics (20%) [14][15]. 3. Market Review - The automotive sector's weekly performance showed a 1.19% increase, ranking third among 31 sectors, with the overall market indices also reflecting positive trends [16][19]. - The report highlights the performance of various automotive sub-sectors, noting significant movements in passenger vehicles and automotive services [16][23]. 4. Material and Component Prices - The report includes insights into the prices of key automotive materials and components, such as battery prices and raw materials like aluminum and copper, which are critical for the industry [25][27].