Core Insights - The automotive cable industry is crucial for electric energy transmission, signal transmission, and control in vehicles, with increasing importance due to the rise of electric vehicles and automotive intelligence [1][7] - The market size of China's automotive cable industry is projected to grow from 149 billion yuan in 2021 to 193.2 billion yuan in 2024, with a compound annual growth rate (CAGR) of 9.05% [1][7] - The global automotive cable market is expected to expand from $58.21 billion in 2020 to $71.74 billion in 2024, with a CAGR of 5.36% [6] Industry Overview - Automotive cables are specifically designed for vehicles, categorized by purpose (signal and power cables), material (copper and aluminum), voltage (high and low), and temperature tolerance (high and low) [3] - The automotive cable industry supply chain includes raw materials (copper, aluminum, rubber, plastic), manufacturing, and downstream automotive manufacturers [3] Market Trends - The automotive cable market is expected to benefit from the increasing demand for electric vehicles and the advancement of smart connectivity in cars, leading to higher cable usage and value per vehicle [1][4] - The market size is anticipated to exceed 200 billion yuan by 2025, driven by economic growth and rising consumer demand [1][7] Competitive Landscape - The Chinese automotive cable industry is characterized by a mix of foreign dominance and local competition, with companies like Yazaki and Sumitomo leading the high-end market, while domestic firms like Carby and Xinhongye are gaining market share [8] - Carby and Xinhongye are focusing on technology introduction and cost advantages to enhance their market presence, especially in the growing electric vehicle segment [8] Challenges - The industry faces challenges such as outdated raw material performance, which affects the development of new automotive cables and increases operational costs [11] - The supply chain is often closed, with established international brands preferring to source from stable partners, making it difficult for local manufacturers to penetrate these networks [12] Future Development Trends - Lightweight cables are becoming a focus due to the push for energy efficiency and electric vehicle transition, utilizing aluminum alloys and innovative insulation materials [13][14] - High-voltage systems are being integrated into electric vehicles, necessitating advancements in insulation materials and safety features [15] - The demand for high-speed data transmission is increasing, leading to the development of high-frequency and high-speed cable systems [16] - Smart manufacturing technologies are reshaping production processes, enhancing flexibility and customization in cable manufacturing [17]

Investment Rating - The industry investment rating is "Positive" [2] Core Views - The automotive industry is advancing in smart connectivity, with JD.com collaborating with CATL and GAC Group to launch a new vehicle [2][21] - The A-share automotive sector underperformed the market, with a decline of 5.99% compared to the Shanghai and Shenzhen 300 index's drop of 2.22% [3][9] - Key companies to watch include BYD, Great Wall Motors, Leap Motor, and others in the passenger vehicle segment, as well as major players in commercial vehicles and auto parts [3][21] Industry Performance - The automotive sector's performance this week was ranked 29th among A-share industries, with significant declines in various segments: - Passenger vehicles down 3.49% - Commercial vehicles down 3.89% - Auto parts down 7.52% [3][4][9] - Notable gainers in the passenger vehicle segment included Haima Automobile and GAC Group, while Zhongtong Bus and CIMC Vehicles led in the commercial vehicle segment [6][19][20] Key Industry News - The Ministry of Industry and Information Technology is pushing for the integration of smart connected vehicles and urban infrastructure, with plans to approve L3 level vehicle production [21] - JD.com, GAC, and CATL are set to launch the "National Good Car" during the Double 11 shopping festival, focusing on user needs and smart upgrades [21] - Leap Motor plans to produce the B10 electric SUV in Europe, potentially avoiding EU tariffs on Chinese electric vehicles [22] - Changan Automobile and JD.com signed a strategic cooperation agreement to explore smart logistics and vehicle development [22] Upstream Data Tracking - The report includes tracking of key material prices such as steel, aluminum, and lithium carbonate, which are crucial for automotive production [23][24][27]