Core Viewpoint - The upcoming implementation of the new national standard for Automatic Emergency Braking (AEB) will transition from a recommended to a mandatory requirement, significantly enhancing the safety features in both passenger and commercial vehicles in China [2][3][5]. Industry Impact - The upgrade of AEB from a recommended to a mandatory standard reflects the industry's progress and a response to consumer safety demands, marking a shift from passive compliance to proactive safety measures [3][4]. - The new standard is expected to drive the market size for AEB-related products from 38 billion yuan in 2024 to 120 billion yuan by 2026, with a compound annual growth rate of 9.36% [3]. - The inclusion of commercial vehicles under the new standard aims to address the high accident rates associated with these vehicles, as AEB's market penetration in commercial vehicles is currently below 5% [4][5]. Technological Advancements - The new standard introduces innovative testing scenarios, including collision warnings and emergency braking for vulnerable road users such as pedestrians and cyclists, which are tailored to China's unique traffic conditions [6][10]. - AEB is positioned as a foundational safety feature in advanced driver-assistance systems (ADAS), facilitating the development of higher-level autonomous driving technologies [7][10]. - The standard emphasizes the need for high reliability and low false trigger rates in AEB systems, pushing manufacturers to enhance their technology and testing methodologies [5][8]. Market Dynamics - The implementation of the new standard is expected to reshape the supply chain dynamics within the automotive industry, as companies will need to reassess their AEB system designs and sensor configurations to meet the new requirements [9][11]. - Companies are likely to adopt multi-sensor fusion strategies to ensure compliance and improve performance, balancing cost and functionality in their AEB systems [9][10]. - The new standard is anticipated to create opportunities for local suppliers to innovate and meet the specific needs of the Chinese market, enhancing their competitive edge [12].

Investment Rating - The report maintains an "Outperform" rating for the automotive industry [1][5][4]. Core Views - The report emphasizes the acceleration of Robotaxi commercialization and the standardization of AEB systems, indicating a shift towards electric and intelligent vehicles [1][3]. - It highlights the mid-to-long-term opportunities in the automotive sector driven by the rise of domestic brands and the demand for incremental components in the context of electric and intelligent trends [3][12]. - The report anticipates a strong new product cycle for companies like Huawei and Xiaomi in the automotive industry [3][12]. Monthly Production and Sales Data - In April, the automotive production and sales reached 2.619 million and 2.590 million units, respectively, with a month-on-month decline of 12.9% and 11.2%, but a year-on-year increase of 8.9% and 9.8% [1]. - New energy vehicles (NEVs) saw production and sales of 1.251 million and 1.226 million units, with year-on-year growth of 43.8% and 44.2%, respectively [1][19]. - NEVs accounted for 47.3% of total new vehicle sales [1]. Weekly Data Insights - From May 5 to May 11, domestic passenger car registrations totaled 454,000 units, reflecting a year-on-year increase of 4.9% and a month-on-month increase of 7.1% [1]. - NEV registrations during the same period reached 226,100 units, with a year-on-year increase of 16.0% and a month-on-month increase of 10.7% [1]. Market Performance - For the week of May 14 to May 18, the CS automotive index rose by 1.25%, outperforming the Shanghai Composite Index, which fell by 0.22% [2]. - The report notes a significant increase in the stock prices of passenger vehicle manufacturers, with notable gains for companies like Li Auto and Xpeng [2]. Investment Recommendations - The report recommends focusing on domestic brands and the opportunities in incremental components, particularly in the context of electric and intelligent vehicles [3][12][20]. - Specific recommendations include: - Vehicle manufacturers: Li Auto, Xpeng, Geely, Yutong Bus, and Seres [3][4]. - Intelligent component suppliers: Cobo, Huayang Group, Joyson Electronics, and Bolong Technology [3]. - Robotics companies: Top Group, Sanhua Intelligent Control, and Shuanghuan Transmission [3]. - Domestic alternatives: Xingyu, Fuyao Glass, Jifeng, New Spring, and Horizon Robotics [3]. Company Earnings Forecasts - The report provides earnings forecasts and investment ratings for key companies, including: - Li Auto: Outperform, with an estimated EPS of -0.05 for 2025 [4]. - Geely: Outperform, with an estimated EPS of 1.36 for 2025 [4]. - Xpeng: Outperform, with an estimated EPS of -0.84 for 2025 [4]. - Horizon Robotics: Outperform, with an estimated EPS of -0.14 for 2025 [4]. - Top Group: Outperform, with an estimated EPS of 2.04 for 2025 [4].

Monthly Production and Sales - In April, automobile production and sales reached 2.619 million and 2.590 million units, respectively, with month-on-month declines of 12.9% and 11.2%, but year-on-year increases of 8.9% and 9.8% [1][17] - Passenger car production and sales were 2.257 million and 2.223 million units, showing month-on-month declines of 12.4% and 10%, and year-on-year growth of 10.2% and 11% [1][17] - New energy vehicle (NEV) production and sales were 1.251 million and 1.226 million units, with year-on-year growth of 43.8% and 44.2% [1][17] - NEVs accounted for 47.3% of total new car sales, while exports reached 517,000 units, reflecting month-on-month growth of 2% and year-on-year growth of 2.6% [1][17] Weekly Data - From May 5 to May 11, domestic passenger car registrations totaled 454,000 units, up 4.9% year-on-year and 7.1% month-on-month; NEV registrations were 226,100 units, up 16.0% year-on-year and 10.7% month-on-month [1][17] Market Performance - During the week of May 14 to May 18, the CS Auto index rose by 1.25%, with the CS Passenger Vehicle index increasing by 3.16%. In contrast, the CS Commercial Vehicle index fell by 2.02% [1][17] Cost Tracking and Inventory - As of May 10, 2025, prices for float glass, aluminum ingots, and zinc ingots decreased year-on-year by 22.49%, 4.05%, and 1.32%, respectively, while month-on-month changes were +0.10%, -2.28%, and -0.29% [2] - The inventory coefficient for automotive dealers in April was 1.41, down 17.1% year-on-year [2] Industry News - BYD announced the establishment of its European headquarters in Hungary, marking a significant step in its international development and local integration [2] - WeRide launched a pure unmanned Robotaxi trial operation in Abu Dhabi, becoming the first in the Middle East [3] - Tesla released videos of its humanoid robot dancing and applied for the "Optimus" trademark in China [4] - Huawei and UBTECH signed a comprehensive cooperation agreement to develop humanoid robots and smart factory demonstration solutions [5] - The China Securities Index Company launched the China Securities Innovation and Entrepreneurship Robot Index, reflecting the performance of companies in the robotics sector [6] - XPeng officially entered the Italian market, showcasing its products at the Milan Design Week [7] - Geely's acquisition of Zeekr was detailed, with management changes announced post-acquisition [8] - Audi plans to sell its design and engineering subsidiary Italdesign [9] New Model Launches - The new IM L6 was officially launched with a starting price of 219,900 yuan, featuring advanced technologies [10] - Honda postponed its investment plan of approximately 150 billion CAD for an electric vehicle and battery production base in Canada due to market demand slowdown [11] Government News - A mandatory national standard for light vehicle automatic emergency braking systems has entered the public consultation phase, expanding its applicability [12]

Group 1 - The core concept of the articles revolves around the rapid advancement and widespread adoption of intelligent driving technology in the Chinese automotive industry, with a significant focus on the transition from luxury to mainstream vehicles [1][10][15] - By 2025, the penetration rate of Level 2 and above intelligent driving is expected to reach 21.4%, indicating a shift towards more accessible technology for entry-level models [1][10] - Chinese intelligent driving companies are predicted to capture 33% of the global market by 2030, with technology exports potentially exceeding $100 billion, showcasing their competitive edge in sensor technology, algorithms, and cost control [2][10] Group 2 - The market for automotive electronics and intelligent systems is expected to grow rapidly, with the domain controller market seeing significant increases due to the dual drivers of hardware affordability and software evolution [4][6] - The global market for L2+ systems is projected to reach $4 billion by 2042, with advanced driver-assistance systems (ADAS) becoming standard in new vehicles [6][10] - The integration of robotics and intelligent driving technology is emerging as a new frontier, with companies like Zhixing Technology exploring applications in various sectors, including low-altitude logistics and industrial automation [8][12][15] Group 3 - The trend of "technology democratization" is evident as intelligent driving technology transitions from being a luxury feature to a standard offering in vehicles, driven by cost reductions in hardware and advancements in software [10][12] - Companies are increasingly diversifying their business models by incorporating robotics into their portfolios, positioning themselves as "smart mobility solution providers" [15][17] - The competition in the intelligent driving sector is intensifying, with leading companies focusing on building ecosystems that integrate both automotive and robotic technologies, indicating a shift towards a more collaborative and innovative industry landscape [17]