Investment Rating - The report maintains a "Recommended" rating for the automotive industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [4][29]. Core Insights - The automotive industry experienced an overall decline of 1.5% during the week of October 5 to October 11, 2025, with various segments showing mixed performance [2][10]. - New energy vehicle sales reached record highs in September, with Leap Motor delivering over 60,000 units, marking a significant milestone for the industry [21]. - The Ministry of Industry and Information Technology, along with the Ministry of Finance and the State Taxation Administration, announced adjustments to the technical requirements for the exemption of vehicle purchase tax for new energy vehicles for 2026-2027 [22]. Market Performance Overview - The Shanghai Composite Index rose by 0.4%, while the Shenzhen Composite Index fell by 0.5%, and the ChiNext Index dropped by 3.9% during the same period [2][8]. - The automotive sector's secondary segments mostly declined, with the automotive services sector showing a notable increase of 1.7% [10]. Individual Stock Performance - Among automotive stocks, Meili Technology saw the highest increase at 18.9%, while Mingxin Xuteng experienced the largest decline at 18.5% [3][12]. - Key covered stocks showed a mixed performance, with Kabeiyi rising by 13.2% and Hengshuai falling by 10.6% [15]. Recent Industry Developments - BYD announced the production of its 14 millionth new energy vehicle, marking a significant milestone in its global expansion [23]. - Changan Avita completed the payment for the acquisition of a 10% stake in Huawei's subsidiary, marking the completion of the transaction [24]. - Tesla's Q3 vehicle deliveries increased by 7.4% year-on-year, exceeding analyst expectations, with a total of 497,099 vehicles delivered [25]. Investment Recommendations - The report recommends focusing on companies with strong sales performance or potential blockbuster vehicles, such as BYD, Seres, Great Wall Motors, and Jianghuai Automobile [7]. - For commercial vehicles, it suggests investing in Yutong Bus, China National Heavy Duty Truck Group, and Weichai Power [7].