Core Insights - The SW automotive sector saw a decline in public fund holdings in Q3 2025, shifting from overweight to underweight status [2][4] - The total market value of public funds heavily invested in the SW automotive sector was 103.978 billion, down 15.41% quarter-on-quarter and 20.64% year-on-year [2][3] - The sector's market value accounted for 3.13% of the total market value of public fund holdings in A-shares, a decrease of 1.62 percentage points quarter-on-quarter and 1.47 percentage points year-on-year [2][3] Fund Holdings Analysis - The SW automotive sector ranked 9th among 31 Shenwan primary industries in terms of fund holding market value, but its underweight ratio ranked 23rd, indicating a relatively low allocation [2][3] - The concentration of holdings in the top stocks continued to decline, with the combined market value of the top 5, 10, and 20 stocks at 33.579 billion, 55.063 billion, and 78.900 billion respectively, showing a quarter-on-quarter decrease in concentration [2][3] Stock Performance - Among the top ten stocks held, only BYD experienced a slight decline, while the others saw price increases, with Zhejiang Rongtai rising over 100% [3][4] - In the automotive parts sector, the top five stocks by holding market value included Fuyao Glass, New Spring, Top Group, Zhejiang Rongtai, and Sailun Tire, with mixed changes in holdings [3][4] - In the passenger vehicle sector, SAIC Motor received significant increases in holdings, while BYD and others faced reductions [3][4] Investment Recommendations - The automotive parts and passenger vehicle sectors are highlighted as key areas of focus for fund institutions in Q3 2025 [4] - The domestic market is expected to benefit from policies supporting equipment upgrades and trade-in programs, presenting growth opportunities for the automotive industry [4] - The export growth momentum is anticipated to continue due to China's competitive pricing and ongoing improvements in technology and services [4]

Investment Rating - The report rates the automotive industry as "outperforming the market" with an expected relative increase of over 10% in the next six months [40]. Core Insights - In Q3 2025, the total market value of public funds heavily invested in the SW automotive industry decreased to 103.978 billion yuan, reflecting a 15.41% decline quarter-on-quarter and a 20.64% decline year-on-year [2][12]. - The proportion of the SW automotive industry in the total market value of public funds was 3.13%, ranking 9th among 31 first-level industries, while the low allocation ratio was 1.15%, ranking 23rd [2][13]. - The concentration of holdings in the top stocks of the SW automotive industry continued to decline, with the combined market value of the top 5, 10, and 20 stocks at 33.579 billion yuan, 55.063 billion yuan, and 78.900 billion yuan, respectively [3][18]. Summary by Sections Overall Industry - The SW automotive industry shifted from an overweight to an underweight position in Q3 2025, with a total market value of 103.978 billion yuan, down 15.41% from the previous quarter and 20.64% year-on-year [2][12]. - The low allocation ratio of 1.15% indicates a significant reduction in investment interest compared to previous periods [2][13]. Sub-sectors - The automotive parts sector had the highest market value among fund holdings at 65.406 billion yuan, showing a 31.79% increase, while the passenger vehicle sector saw a significant decrease of 61.39% to 16.616 billion yuan [20][24]. - The commercial vehicle and automotive service sectors had market values of 7.492 billion yuan and 539 million yuan, respectively, both experiencing declines [20][24]. Stock Trends - The top ten stocks held by public funds in the SW automotive industry included BYD, Fuyao Glass, and others, with most stocks showing positive performance except for BYD, which saw a slight decline [3][31]. - The top ten stocks that received increased holdings included New Spring Co., Top Group, and Zhejiang Rongtai, with significant price increases observed [31][34]. Investment Recommendations - The report suggests focusing on the automotive parts and passenger vehicle sectors, which are expected to benefit from domestic market support and export growth due to competitive pricing and technological advancements [5][38].