Investment Rating - Investment recommendation: Outperform the market (maintained) [7] Core Viewpoints - The report provides an in-depth analysis of the domestic ultra-luxury automobile market, highlighting the resilience of imported brands and the potential breakthrough of domestic brands. The market share of domestic brands is expected to grow from 0.8% in 2023 to 4.8% in 2024 [4][9][25]. - The ultra-luxury SUV market is highly competitive, with Porsche Cayenne leading, while domestic brand Yangwang U8 is starting to gain recognition. Imported brands dominate the ultra-luxury sedan market, but new high-end models from domestic brands like Yangwang U9 are entering the market [4][10][40]. - The ultra-luxury MPV market is led by Toyota Alphard, with domestic brand Zeekr 009 gradually making inroads [4][10]. Summary by Sections 1. Resilience of Imported Ultra-Luxury Cars and Structural Breakthrough of Domestic Brands - The overall sales of ultra-luxury cars remain resilient, with annual sales maintaining above 200,000 units. In 2024, the expected sales volume is approximately 200,000 units, a decrease of 15.2% year-on-year [9][21]. - Imported brands continue to dominate the market, but domestic brands are gradually increasing their market share, projected to rise from 0.8% in 2023 to 4.8% in 2024 [25][28]. 2. Intense Competition in Various Sub-Markets and Differentiation of Domestic Brands - The ultra-luxury SUV market is stable, with sales expected to reach 112,000 units in 2024, down 13.2% year-on-year. The top five models include Porsche Cayenne, Land Rover Range Rover, and Yangwang U8, with respective sales of 21,000, 19,000, and 7,000 units [30][32]. - The ultra-luxury sedan market is primarily dominated by imported brands, with 2024 sales expected to drop to 66,000 units, a 22.4% decrease year-on-year. However, domestic brands like Yangwang U9 and NIO ET9 are beginning to penetrate this market [40][42]. - The ultra-luxury MPV market is led by Toyota Alphard, with Zeekr 009 starting to gain traction, achieving over 2,000 units in sales in 2024 [51]. 3. Investment Recommendations: Focus on "New Luxury" Domestic Brands with Leading Smart Electric Technology - Domestic brands are expected to leverage advancements in electric and smart technologies to penetrate the ultra-luxury market. In 2024, China's new energy vehicle sales are projected to reach 12.87 million units, a 35.5% increase year-on-year [54][55]. - The report recommends focusing on brands like Yangwang from BYD and the joint venture brand Zunji from Jianghuai Automobile and Huawei, which are positioned to lead the high-end market [54][55].