Investment Rating - The report maintains a "Recommended" rating for the automotive industry, indicating a positive outlook for the sector's fundamentals and expected performance exceeding the benchmark index [4]. Core Insights - The automotive industry is projected to achieve approximately 32.3 million vehicle sales in 2025, reflecting a year-on-year growth of about 3%. New energy vehicle sales are expected to reach around 15.5 million units, with a growth rate of approximately 20% [33]. - The report outlines a comprehensive "Work Plan" aimed at stabilizing growth in the automotive sector, focusing on expanding domestic consumption, enhancing supply quality, optimizing the development environment, and deepening open cooperation [33]. - The automotive industry experienced an overall increase of 1.5% in the week from September 7 to September 13, with significant gains in the automotive services and parts sectors, which rose by 4.1% and 3.4% respectively [2][12]. Market Performance - The automotive sector's performance is highlighted by a 1.5% increase in the CS automotive index, with the Shanghai A-share index also reflecting a similar growth [10]. - Notable individual stock performances include Zhontai Automobile (+39.7%), Haowu Shares (+30.4%), and Zhejiang Rongtai (+22.5%), while stocks like Patell (-23.6%) and Huayang Racing (-20.3%) faced declines [3][16]. Industry Dynamics - The report notes that several new vehicle models are set to launch, including the Shangjie H5, which has already received over 80,000 pre-orders, and the new generation of Zhiji LS6, which achieved over 10,000 orders within 27 minutes of its launch [25][29]. - The report also mentions the upcoming Munich Auto Show, where Chinese exhibitors will represent a significant portion of the international presence, indicating the growing influence of Chinese automotive manufacturers [26]. Recommendations - The report recommends focusing on companies with strong sales performance or potential blockbuster vehicles, such as BYD, Great Wall Motors, and Jianghuai Automobile, while also keeping an eye on strategic partnerships with companies like BAIC Blue Valley and Changan Automobile [8][9].