Core Viewpoint - The luxury fuel vehicle market is characterized by a pursuit of premium pricing, driven by brand premium, design premium, and technology premium [1][2][3] Group 1: Luxury Vehicle Market Analysis - The luxury vehicle market is segmented into first-line luxury, second-line luxury, and other luxury brands, with brand premium being the most significant factor [2] - Design premium includes the refinement of products and the rarity of vehicles, which is essential for creating a sense of luxury [2] - Technology premium is derived from critical components such as engines, chassis, and transmissions, with high technical barriers being a core aspect of fuel vehicle pricing [2] Group 2: Changes in the Luxury Vehicle Market in the Era of New Energy - The value system of new energy vehicles differs significantly from that of fuel vehicles, leading to a reduction in technology premium due to the commoditization of high horsepower and the dominance of supply chain companies [3] - The premium in the electric vehicle era is primarily determined by brand and design premiums, as seen in successful models like Huawei's Aito series and Li Auto's L series [3][4] - Domestic electric vehicles struggle to penetrate the ultra-luxury market (over 1.5 million yuan) and have limited presence in the high-end market (over 800,000 yuan) due to the weakened technology premium [3][4] Group 3: Competitive Landscape in the High-End Market - The high-end market is less affected by price wars, as consumers have stronger purchasing power and are less sensitive to tax incentives [4] - High-end vehicle brands cannot engage in price wars without damaging their brand equity, and some brands are still in the process of establishing their market presence [4] - The domestic high-end vehicle market is showing early signs of success, with growth driven by both incremental demand and domestic replacement [4][5] Group 4: Recommendations for Investment - The focus in the new energy high-end market should be on companies with strong brand and product development capabilities, particularly those like Huawei and Xiaomi that have established significant brand equity [5] - Li Auto is highlighted for its strong product development capabilities, particularly with its successful range-extended L series [5]