Core Insights - The report highlights the significant contribution of vehicle emissions to air pollution, with motor vehicle NOx emissions accounting for over 34% of the national total, and heavy-duty trucks responsible for 80% of motor vehicle NOx emissions [1][2] - Major cities like Beijing, Shenzhen, and Chengdu see motor vehicle emissions contributing over 40% to PM2.5 pollution, indicating a severe situation for vehicle exhaust management [1][2] Emission Standards and Regulations - The European Commission proposed the Euro 7 emission standards in November 2022, set to replace Euro 6, with implementation timelines for light and heavy vehicles outlined [3] - The transition from Euro 6 to Euro 7 provides a forward-looking guide for the development of China's National 7 (国七) standards, with stricter limits on heavy vehicle emissions and new requirements for non-exhaust pollutants [3] Market Opportunities - The National 7 standards are expected to create a market space exceeding 200 billion yuan in the automotive after-treatment sector from 2027 to 2030, driven by the need for new components and system upgrades [4][5] - Key areas of focus for new components under the National 7 standards include cold start emissions reduction, nitrogen oxide reduction, and monitoring system upgrades [4] - The projected incremental market space for automotive after-treatment is estimated at 244.2 billion yuan in 2027, increasing to 733.1 billion yuan by 2030 [5] Recommended Companies - Companies with strong technological capabilities and broad product layouts in the after-treatment sector are recommended for investment, including Yunyi Electric, Aikelan, Zhongzi Technology, and Weifu High-Tech [5]