Investment Rating - The industry investment rating is "Positive" [2] Core Views - The automotive industry is advancing in smart connectivity, with JD.com collaborating with CATL and GAC Group to launch a new vehicle [2][21] - The A-share automotive sector underperformed the market, with a decline of 5.99% compared to the Shanghai and Shenzhen 300 index's drop of 2.22% [3][9] - Key companies to watch include BYD, Great Wall Motors, Leap Motor, and others in the passenger vehicle segment, as well as major players in commercial vehicles and auto parts [3][21] Industry Performance - The automotive sector's performance this week was ranked 29th among A-share industries, with significant declines in various segments: - Passenger vehicles down 3.49% - Commercial vehicles down 3.89% - Auto parts down 7.52% [3][4][9] - Notable gainers in the passenger vehicle segment included Haima Automobile and GAC Group, while Zhongtong Bus and CIMC Vehicles led in the commercial vehicle segment [6][19][20] Key Industry News - The Ministry of Industry and Information Technology is pushing for the integration of smart connected vehicles and urban infrastructure, with plans to approve L3 level vehicle production [21] - JD.com, GAC, and CATL are set to launch the "National Good Car" during the Double 11 shopping festival, focusing on user needs and smart upgrades [21] - Leap Motor plans to produce the B10 electric SUV in Europe, potentially avoiding EU tariffs on Chinese electric vehicles [22] - Changan Automobile and JD.com signed a strategic cooperation agreement to explore smart logistics and vehicle development [22] Upstream Data Tracking - The report includes tracking of key material prices such as steel, aluminum, and lithium carbonate, which are crucial for automotive production [23][24][27]