Group 1 - The core viewpoint is that the 2026 national subsidy policy for automobiles emphasizes quality improvement and efficiency, with a shift from fixed subsidies to percentage-based subsidies based on new car prices, along with a cap on the subsidy amount [1][2] - The new energy vehicle (NEV) scrap and replacement subsidy is set at 12% of the new car price, with a maximum of 20,000 yuan, while the replacement subsidy is 8% with a cap of 15,000 yuan. Compared to the 2025 policy, the subsidy decreases for cars priced below 166,700 yuan for scrap updates and below 187,500 yuan for replacement updates [2][3] - For fuel vehicles (2.0L and below), the scrap update subsidy is 10% of the new car price, capped at 15,000 yuan, and the replacement subsidy is 6%, capped at 13,000 yuan. Similar to NEVs, the subsidy decreases for vehicles priced below 150,000 yuan for scrap updates and below 216,700 yuan for replacement updates [3] Group 2 - The 2026 national subsidy policy is expected to exceed expectations, potentially driving demand for mid-to-high-end models and mitigating the negative impact of the reduction in purchase tax incentives for new energy vehicles. The policy's cap remains unchanged, but lower-priced electric vehicle subsidies decrease, which may boost sales and prices of higher-end models [3] - The commercialization of L3-level autonomous driving is set to begin, with the first batch of L3 vehicles receiving product access permits. This development is expected to enhance the penetration rate of core incremental components, such as EMB, which aligns with the stringent requirements for response speed and control precision in L3 and above autonomous driving [4] - Recommended stocks include Xpeng Motors and Geely Automobile for complete vehicles, Bertley for electronic control chassis, and Shanghai Yanpu, Jifeng Co., and Tiancai Zikong for automotive seating [4]

Investment Rating - The industry investment rating is maintained as "Outperform the Market" [2] Core Insights - The 2026 automotive subsidy policy continues the previous framework, providing support for scrapping and replacing vehicles, with subsidies set at 12% of the price for new energy vehicles (up to 20,000 yuan) and 10% for fuel vehicles (up to 15,000 yuan) for scrapping [5][6] - The policy aims to stabilize the automotive market and alleviate consumer hesitation, with a focus on companies in the new car cycle and those making breakthroughs in mid-to-high-end markets and overseas expansion [5][6] Summary by Sections 1. Automotive Subsidy Policy - The new policy maintains the same conditions for purchasing new cars, subsidy standards, and application requirements as in 2025, with an expansion of the old vehicle scrapping range [6][7] - The scrapping threshold for gasoline vehicles has been relaxed from before June 30, 2012, to before June 30, 2013, and for diesel vehicles from before June 30, 2014, to before June 30, 2015 [6][7] 2. Subsidy Structure - The subsidy structure has shifted from fixed amounts to percentage-based subsidies, with the maximum limits remaining the same as in 2025 [5][8] - The scrapping subsidy for new energy vehicles is now 12% of the vehicle price (up to 20,000 yuan), while for fuel vehicles it is 10% (up to 15,000 yuan) [5][8] 3. Market Impact - The continuation of the subsidy policy is expected to provide a safety net for demand, helping to stabilize the automotive market and reduce consumer hesitation [5][6] - The first batch of 62.5 billion yuan in special long-term bonds has been allocated to local governments to ensure the policy can be implemented from January 1 [5][6]