Core Viewpoint - The automotive industry in China is experiencing structural growth, with significant increases in both domestic and export sales, particularly in the new energy vehicle (NEV) segment, which is driving the overall market performance [1] Industry Summary - July automotive sales increased by 14.7% year-on-year, with domestic sales up by 12.6% and exports rising by 22.6% [1] - New energy vehicle sales grew by 27.4%, accounting for 48.7% of total automotive sales, with exports seeing a remarkable increase of 120% [1] - The industry is witnessing a continuous rise in new energy penetration rates, indicating a shift towards more sustainable automotive solutions [1] Company Summary - XPeng Motors and Volkswagen Group have expanded their collaboration on electronic and electrical architecture technology, integrating jointly developed systems into Volkswagen's platforms for pure electric, fuel, and plug-in hybrid vehicles in the Chinese market [1] - The issuance of demonstration operation licenses for intelligent connected vehicles and Tesla's plans for smart assisted driving in China are accelerating the industry's move towards greater intelligence and automation [1] - The retail market for passenger vehicles saw a year-on-year increase of 6.3%, with several new models performing exceptionally well [1] ETF Summary - The automotive ETF (516110) tracks the 800 automotive index (H30015), which selects representative companies from the Chinese automotive industry, including vehicle manufacturing and parts supply, to reflect the overall performance of listed companies in the sector [1] - This index is characterized by strong industry features and market representation, providing a comprehensive view of the automotive industry's development trends [1]

Core Viewpoint - The automotive ETF (516110) has dropped over 3%, but the long-term trends of intelligent driving commercialization and electrification are progressing in parallel [1] Industry Summary - According to the latest data from the Passenger Car Association, from May 1 to May 18, the national retail sales of passenger cars reached 932,000 units, a year-on-year increase of 12%. Among these, retail sales of new energy vehicles (NEVs) were 484,000 units, achieving a penetration rate of 52% [1] - The China Association of Automobile Manufacturers reported that from January to April, the market share of domestic brand passenger cars reached 68.7%, marking a historical high. In April alone, sales increased by 23.5% year-on-year to 1.571 million units [1] - According to Kaiyuan Securities, intelligent driving is gradually moving towards commercialization, with limited operational design domains (ODD) and specific speed autonomous driving expected to achieve commercial closure first, particularly in logistics and sanitation scenarios where advantages are already evident [1] - The passenger car industry is seeing a surge in new product releases, indicating that intelligent driving features are becoming a key differentiator in competition. Retail sales of narrow passenger cars in May are expected to reach 1.85 million units, with NEV penetration exceeding half, continuing the trend of electrification in the industry [1] - The global commercialization of autonomous driving is steadily advancing, and the components sector is benefiting from domestic substitution and overseas expansion. Some companies are actively transitioning into the robotics field, which may lead to valuation premiums [1] ETF Summary - The automotive ETF (516110) tracks the 800 Automotive Index (H30015), which is compiled by China Securities Index Co., Ltd. This index focuses on the automotive industry chain and comprehensively reflects the overall performance of listed companies related to the automotive sector, showcasing distinct industry characteristics and representativeness [1]

Group 1 - The core viewpoint of the article indicates that global sales of new energy vehicles (NEVs), including Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and hydrogen fuel cell vehicles, are projected to reach 4.02 million units in Q1 2025, representing a year-on-year growth of 39% [1] - The automotive industry is expected to see a positive trend in its fundamentals in the medium term, supported by increased investments from public funds [1] - Investors are advised to focus on the automotive ETF (516110) for long-term investment opportunities, particularly during market dips [1] Group 2 - The automotive ETF (code: 516110) tracks the 800 Automotive Index (code: H30015), which includes listed companies involved in vehicle manufacturing, sales, parts production, and related services, aiming to reflect the overall market performance of China's automotive industry [1] - For investors without stock accounts, alternative options include the Guotai Zhongzheng 800 Automotive and Parts ETF Initiated Link A (012973) and Link C (012974) [1]