Core Viewpoint - XPeng Motors' stock price has surged significantly after a prolonged period of stagnation, with a 16% increase in US markets and an 18% rise in Hong Kong markets following a positive report from Morgan Stanley, which raised the target price to $34 per share and HK$131 [1][2]. Group 1: Strategic Positioning - Morgan Stanley believes XPeng is transitioning from being merely an electric vehicle manufacturer to a diversified player in artificial intelligence applications, which is expected to provide asymmetric advantages against competitors in both the EV and tech sectors [3]. - Despite having a smaller fleet compared to industry giants like BYD and Geely, XPeng's early focus on autonomous driving and self-developed AI computing is anticipated to accelerate its data collection and learning processes [3]. Group 2: Technological Advancements - XPeng showcased new products, including humanoid robots and autonomous taxis, during its technology day, which operate on the same foundational models, enhancing data acquisition and machine learning capabilities [4]. - The introduction of XPeng's AI Turing chip, which supports L3 autonomous driving, is a key component of its VLA 2.0 system and is expected to be integrated into new vehicle models starting in 2025 [7]. Group 3: Valuation and Market Potential - Morgan Stanley has updated its bullish scenario for XPeng, incorporating the potential revenue from AI products, humanoid robots, and autonomous taxis, alongside the ongoing expansion of its EV business [5]. - The estimated valuation for XPeng's AI Turing chip business is projected at 47 billion RMB, with potential revenue reaching 5-6 billion RMB by 2028 [8]. - The humanoid robot segment is valued at 7 billion RMB, with expectations of rapid growth from 2026 to 2030 [10]. - The autonomous taxi business is estimated to be worth 14 billion RMB, with a projected fleet size of 65,000 vehicles by 2028 [11]. - Overall, Morgan Stanley's bullish scenario values XPeng at approximately 368 billion RMB, factoring in the automotive business, AI chip business, humanoid robots, and autonomous taxis [12].

Core Insights - Xiaopeng Motors achieved a record delivery of 41,581 smart electric vehicles in September 2025, representing a year-on-year growth of 95% and a month-on-month increase of 10%, surpassing the milestone of 40,000 monthly deliveries [1] - In Q3 2025, the total delivery of smart electric vehicles reached 116,007 units, marking a year-on-year increase of 149% [1] - Cumulatively, Xiaopeng Motors delivered 313,196 vehicles in the first nine months of 2025, a significant increase of 218% compared to the same period in 2024 [1] Delivery Milestones - The 10,000th all-new Xiaopeng P7 rolled off the production line in September 2025, making it the fastest model to achieve a production rate of 40 vehicles per hour on the new production line [1] ESG Rating - Xiaopeng Motors maintained its "AAA" MSCI ESG rating in September 2025, the highest global rating, reinforcing its leading position in the global automotive industry [1] Technology and User Engagement - The monthly active user penetration rate for Xiaopeng's intelligent navigation assisted driving (XNGP) reached 83% in urban driving scenarios as of September 2025 [1] - The company launched the VLA driving version of XNGP, featuring a full-scenario parking-to-parking intelligent driving assistance system (ADAS), initially applied to the all-new Xiaopeng P7 and G7 Ultra models [1]

2025年9月，小鵬汽車智能導航輔助駕駛（XNGP）的城區智駕月度活躍用戶滲透率達 83%。本公司已推出VLA驅動版XNGP，具備全場景車位到車位智能輔助駕駛系統 （ADAS）功能，並已首先應用於全新小鵬P7和G7 Ultra車型。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦 不發表聲明，並明確表示概不會就本公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失 承擔任何責任。 自願公告 2025 年 9 月及第三季度智能車交付數據 XPeng Inc. （「本公司」或「小鵬汽車」）之董事會欣然宣佈其2025年9月及第三季度 車輛交付數據。 2025年9月，小鵬汽車創記錄交付智能電動汽車41,581輛，同比增長95%，較上月增長 10%，超過每月交付40,000輛的里程碑。2025年第三季度，小鵬汽車共交付智能電動汽 車116,007輛，同比增長149%。2025年前九個月，小鵬汽車累計交付量達到313,196輛， 較2024年同期增長218%。 2025年9月，第10,000輛全新小鵬P7正式下線，小鵬P7成為本公司車型中在新生產線上 最快達成40JP ...

Core Insights - The automotive industry in China is experiencing growth, with production and sales in August 2025 reaching 2.815 million and 2.857 million units respectively, marking a month-on-month increase of 8.7% and 10.1%, and a year-on-year increase of 13% and 16.4% [1][2] - The sales of new energy vehicles (NEVs) in August 2025 reached 1.395 million units, representing a year-on-year growth of 26.8% and accounting for 48.8% of total new vehicle sales [1][2] Financial Performance - In the first half of 2025, CS Automotive reported revenue of 1,833.56 billion yuan, a year-on-year increase of 7.96%, and a net profit attributable to shareholders of 76.08 billion yuan, up 2% [2] - For Q2 2025, CS Automotive's revenue was 981.32 billion yuan, reflecting a year-on-year increase of 9.14% and a quarter-on-quarter increase of 16.58%. However, net profit decreased by 6.64% year-on-year to 38.62 billion yuan [2] Market Trends - As of August 31, 2025, the CS Automotive sector saw an increase of 11.72%, with passenger vehicles rising by 8.01% and automotive parts by 16.04%, outperforming the CSI 300 index by 1.39 percentage points [3] - The inventory warning index for Chinese automotive dealers stood at 57.0% in August 2025, indicating a year-on-year increase of 0.8 percentage points but a month-on-month decrease of 0.2 percentage points [3] Industry Developments - Significant advancements in autonomous driving and smart vehicles are noted, including the first OTA update for XPeng G7 Ultra and strategic partnerships aimed at accelerating Robotaxi commercialization [4] - The government is focusing on the development of intelligent connected vehicles, with additional budgets allocated for vehicle replacement programs [4] Investment Recommendations - The automotive sector is viewed positively under the current geopolitical climate, with recommendations for passenger vehicles and domestic replacement parts, highlighting companies like Leap Motor, JAC Motors, and Geely [5] - Companies in the smart technology and robotics sectors, such as Kobot, Huayang Group, and Top Group, are also recommended for investment [5]

Core Viewpoint - The automotive sector is experiencing steady growth, with CS Automotive achieving a revenue of 18,335.59 billion yuan in H1 2025, a year-on-year increase of 7.96%, and a net profit of 760.76 billion yuan, up 2% year-on-year [3][10]. Revenue and Profit Summary - In Q2 2025, CS Automotive reported a revenue of 9,813.21 billion yuan, a year-on-year increase of 9.14% and a quarter-on-quarter increase of 16.58%. The net profit for the same period was 386.23 billion yuan, down 6.64% year-on-year but up 7.61% quarter-on-quarter [3][10]. - The automotive sales volume in China for August 2025 reached 2.815 million units, with a month-on-month growth of 8.7% and a year-on-year growth of 13% [3]. Market Performance - As of August 31, 2025, the CS Automotive sector saw an increase of 11.72%, outperforming the CSI 300 index by 1.39 percentage points and the Shanghai Composite Index by 3.75 percentage points [3]. - The stock performance of various segments within the automotive sector showed CS Automotive Parts rising by 16.04% and CS Passenger Vehicles increasing by 8.01% [3]. Cost Tracking - As of August 31, 2025, prices for float glass, aluminum ingots, and zinc ingots changed year-on-year by -13.3%, +5.4%, and -7.1% respectively [4]. Inventory Levels - The inventory warning index for Chinese automotive dealers was at 57.0% in August 2025, indicating a slight year-on-year increase of 0.8 percentage points but a month-on-month decrease of 0.2 percentage points [4]. Industry Highlights - Significant developments include the launch of the first SUV by the Huawei-SAIC partnership, the H5 model, with a starting price of 169,800 yuan [94]. - Dongfeng Group's subsidiary, Lantu Automotive, is set to list on the Hong Kong Stock Exchange [95]. - Chery Automobile has received approval for its IPO in Hong Kong [97]. - The 2025 Chengdu International Auto Show highlighted new energy vehicles as the main focus, showcasing over 1,600 vehicles from more than 120 brands [98]. Segment Performance - In H1 2025, the revenue for CS Passenger Vehicles was 9,705 billion yuan, with a year-on-year growth of 9%, while the net profit decreased by 11% [39]. - The CS Automotive Parts segment achieved a revenue of 5,140 billion yuan in H1 2025, up 10% year-on-year, with a net profit increase of 15% [53][60]. - The CS Commercial Vehicles segment reported a revenue of 2,778 billion yuan in H1 2025, with a slight year-on-year increase of 0.82% [72].

Domestic News - Hubei aims to reshape a first-class domestic automotive industry ecosystem by leveraging its strong industrial foundation and market potential, focusing on high-quality development and transformation [2] - Great Wall Motors and the China Automotive Technology Research Center have deepened their strategic cooperation to tackle industry challenges and seize new opportunities for high-quality development in the automotive sector [3] - NIO's CEO Li Bin announced that there will be no model replacements next year, focusing instead on expanding the SUV product lineup, with significant improvements made to existing models [4] - XPeng Motors has initiated the first OTA upgrade for the G7 Ultra, enhancing its Vehicle Language Assistant capabilities and introducing new features for improved driving assistance [5] - Geely has confirmed its plan to re-enter the South African market, with the first deliveries of the EX5 and Geometry E22H scheduled for October [6] - Nissan has established a new import and export company in Guangzhou with a registered capital of 1 billion RMB, focusing on various automotive-related services [7] - Wuling Liuji has launched a low-altitude economy division, focusing on the development of drone engines and related products [8] - Wan'an Technology will build a production base in Wuhan Economic Development Zone, primarily manufacturing automotive components [9] International News - President Trump signed an order to reduce tariffs on Japanese automotive imports from 27.5% to 15%, effective within a week, which is expected to significantly impact Japanese automakers [11] - Canada plans to delay a regulation requiring automakers to meet minimum electric vehicle sales standards by 2026, in response to trade policy challenges [12] - BMW's new generation production model, the iX3, will be globally launched, showcasing significant advancements in design and technology [13] - Tesla's Robotaxi service has officially opened to the public, expanding its availability beyond initial limited users [15] Commercial Vehicles - Supa Leopard has delivered its first batch of electric trucks in Ningxia, marking a significant collaboration in the new energy heavy truck sector [16] - Beiqi Foton has launched an assembly plant in Uganda, aiming to capitalize on local market opportunities and reduce production costs [17] - Huolala has introduced a customized truck model, marking a strategic shift from light asset operations to heavy asset investments in the digital freight platform [18] - Ruichi Automotive has begun pre-sales for its new smart commercial vehicles at the 2025 World Intelligent Industry Expo, aligning with national strategies for smart and electric vehicles [19]

Core Insights - Xiaopeng Motors has officially launched a large-scale OTA upgrade for its G7 Ultra model, focusing on AI-assisted driving and smart cockpit enhancements [1] - The integration of the VLA large model significantly enhances the NGP intelligent driving system's capabilities, improving reasoning, prediction, and defensive driving in complex road conditions [1] - The new "human-machine co-driving" mode allows drivers to subtly intervene in vehicle control, enhancing collaboration between the driver and the vehicle's intelligent system [1] Feature Enhancements - The new version introduces practical features addressing user pain points, such as "custom parking" for manual creation of virtual parking boxes and "smart exit" for remote vehicle maneuvering via a mobile app [2] - An AES automatic emergency steering system has been added to enhance active safety by allowing the vehicle to steer away from potential collisions when braking distance is insufficient [2] - The smart cockpit experience has been optimized with enriched AR-HUD functionalities, including adaptive height adjustment and interactive AR animations to alleviate driver frustration during traffic [2]

Core Insights - In July 2025, automotive production and sales reached 2.591 million and 2.593 million units respectively, showing a month-on-month decline of 7.3% and 10.7%, but year-on-year growth of 13.3% and 14.7% [2][4] - For the period of August 1-10, 2025, retail sales of passenger vehicles totaled 452,000 units, a year-on-year decrease of 4% but a month-on-month increase of 6%. Wholesale figures reached 403,000 units, reflecting a year-on-year increase of 16% but a month-on-month decline of 3% [2][3] - From August 4-10, 2025, new passenger vehicle registrations were 382,000 units, down 5.3% year-on-year and 18.5% month-on-month, with new energy vehicles accounting for 218,400 units, showing a year-on-year increase of 2.4% but a month-on-month decrease of 11.9% [2][3] Market Performance - For the week of August 11-15, 2025, the CS automotive index rose by 3.21%, with the CS passenger vehicle index up 2.18%, and the CS commercial vehicle index increasing by 0.98%. The CS automotive parts index saw a rise of 4.12%, while the CS automotive sales and service index fell by 1.38% [2][4] - The electric vehicle sector increased by 5.41%, and the smart vehicle segment rose by 2.39%. In comparison, the CSI 300 index increased by 2.37%, and the Shanghai Composite Index rose by 1.7% [2][4] Cost Tracking and Inventory - As of August 10, 2025, prices for float glass, aluminum ingots, and zinc ingots changed year-on-year by -12.8%, +8.8%, and -0.1% respectively, with month-on-month changes of +5.7%, -0.7%, and +0.4% [3] - The automotive dealer inventory warning index for July was 57.2%, reflecting a year-on-year decrease of 2.2 percentage points and a month-on-month increase of 0.6 percentage points [3] Market Focus - Key developments include the launch of the Xiaopeng G7 Ultra with VLA smart driving upgrades, orders for Hesai's lidar from Toyota, and the testing of self-developed chips by Momenta. Tesla's Robotaxi is set for trial operations in September [3] - In the vehicle sector, Li Auto is restructuring its sales framework, and Wuling is deepening its collaboration with Huawei. New models include the pre-sale of the Zhiji LS6 and the long-range version of Tesla Model 3, with the new Tank 500 model achieving over 11,000 orders on its first day [3] - Policy updates include an additional 300 million yuan in replacement subsidies in Chongqing and new regulations on smart driving promotions from two ministries, alongside Italy's 700 million USD electric vehicle subsidy [3] Investment Recommendations - The company suggests focusing on the opportunities arising from the rise of domestic brands and the electric and intelligent trends in the automotive sector. Recommended stocks include Leap Motor, JAC Motors, and Geely for strong new product cycles, as well as companies like Coboda and Huayang Group for smart technology [4] - In the robotics sector, Top Group and Sanhua Intelligent Control are highlighted, while domestic replacement recommendations include Xingyu Co., Fuyao Glass, and Jifeng Co. [4]

Monthly Production and Sales - In July 2025, automobile production and sales reached 2.591 million and 2.593 million units, respectively, with month-on-month declines of 7.3% and 10.7%, but year-on-year increases of 13.3% and 14.7% [2] - From August 1 to 10, 2025, retail sales of passenger cars were 452,000 units, a year-on-year decrease of 4% but a month-on-month increase of 6% [2] - Wholesale of passenger cars was 403,000 units, a year-on-year increase of 16% but a month-on-month decrease of 3% [2] Market Performance - The CS automotive index rose by 3.21% during the week of August 11-15, 2025, outperforming the CSI 300 index by 0.84 percentage points [2] - Year-to-date, the CS automotive index has increased by 17.23% [2] Cost Tracking and Inventory - As of August 10, 2025, prices for float glass, aluminum ingots, and zinc ingots changed year-on-year by -12.8%, +8.8%, and -0.1%, respectively [3] - The automotive dealer inventory warning index for July was 57.2%, showing a year-on-year decrease of 2.2 percentage points [3] Industry News - Xiaopeng G7 Ultra will launch VLA smart driving upgrades in August 2025 [5] - Hesai Technology received mass production orders for laser radar from a Toyota joint venture [6] - The new generation of Zhiji LS6 has officially started pre-sales, with a price range of 219,900 to 289,900 yuan [7] - Li Auto announced a restructuring of its sales and service organization [8] - SAIC-GM-Wuling and Huawei are upgrading their cooperation [9] Policy Updates - Chongqing has added 300 million yuan for vehicle replacement subsidies [14] - Italy has approved nearly $700 million in subsidies to promote electric vehicle sales [16] Financial Performance - Several companies reported significant profit growth in H1 2025, including Ninebot with a net profit of 1.242 billion yuan, up 108.45% year-on-year [20] - Geely Automobile reported a net profit of 9.29 billion yuan in H1 2025, down 11.74% year-on-year [20] Upcoming Models - A list of new models set to launch in August 2025 includes various brands and price ranges, such as Dongfeng Fengxing's Star Sea V9 priced between 199,900 and 279,900 yuan [17]

Core Insights - Xiaopeng Motors' Chairman He Xiaopeng announced that the Xiaopeng G7 Ultra will begin the first batch of VLA (Vehicle Lane Assist) deliveries within August [1] - All Xiaopeng G7 Ultra models will align with Xiaopeng's capabilities in NGP (Navigation Guided Pilot) and will introduce advanced features such as special vehicle detours and blind spot risk reduction [1] - He Xiaopeng emphasized that this is just the beginning, as the software and AI capabilities to fully utilize the 2250+ TOPS computing power are still under development, indicating significant future improvements [1] - The development of the Max model will continue, focusing on stronger intelligent driving assistance, with ongoing tests for the next version of the Max model, including enhancements in high-speed human-vehicle co-driving and reinforcement learning [1] - Xiaopeng Motors also announced that features like "high-speed human-machine co-driving" will soon be available on the Ultra model and will later be pushed to the Max model via OTA (Over-The-Air) updates [1]