Core Viewpoint - Hyundai Motor aims to enhance brand recognition in the competitive Chinese automotive market, focusing on flagship models like the Parisite and the Elantra N TCR Edition rather than immediate profitability [2][10]. Group 1: Historical Performance - Hyundai's Beijing Modern achieved significant sales milestones in the past, with Sonata and Elantra models leading to over 1 million annual sales in 2013 [3]. - However, sales have declined sharply due to the rise of domestic brands, dropping from over 820,000 units in 2017 to approximately 154,000 units by 2024 [3][4]. Group 2: Sales Strategy - The company has adopted a "price for volume" strategy, significantly reducing prices on models like the 11th generation Sonata and the new Tucson L to stimulate sales [3][5]. - In June 2025, sales showed a 66% month-over-month increase, attributed to these price cuts [3]. Group 3: Market Challenges - Hyundai's current lineup primarily consists of fuel vehicles, which do not meet the growing demand for new energy vehicles (NEVs) in China, where NEV penetration reached 54% in July 2025 [5][6]. - The penetration rate for NEVs among mainstream joint venture brands is only 6.7%, indicating a significant gap compared to domestic brands [5]. Group 4: Future Plans - Hyundai plans to accelerate its transition to NEVs, defining 2025 as the year of its NEV brand launch, with a dual matrix of NEVs and fuel vehicles [8]. - The company aims to introduce 2 to 3 new energy models annually over the next four years, covering various vehicle types [8]. Group 5: Investment and Partnerships - Beijing Automotive and Hyundai have agreed to invest $1.095 billion in Beijing Modern to support its transition to NEVs and enhance its product offerings [7]. - The investment will help stabilize capital in the short term and facilitate technology and product investments for long-term growth [7]. Group 6: New Product Launches - Hyundai has introduced the hybrid version of the Parisite and plans to launch the ELEXIO series, a pure electric SUV, in September 2025 [9][10]. - The ELEXIO is based on Hyundai's global electric vehicle platform and is expected to have a range of over 700 km [9].

Core Viewpoint - The appointment of Qiao Xinyu as the Vice General Manager of the User Operation Center for BAIC New Energy's ARCFOX brand marks a significant strategic shift for the company, indicating a dual-brand strategy with a focus on both ARCFOX and the Huawei collaboration brand, STELATO [1][5][12]. Group 1: Leadership Changes - Qiao Xinyu has joined BAIC New Energy after a 20-year career in the automotive industry, having held key positions at Mercedes-Benz, Volkswagen, and Great Wall Motors [1]. - The recent leadership changes at BAIC New Energy include the promotion of Zhang Guofu to Chairman and Liu Guanquiao to General Manager, reflecting a broader restructuring within the company [5][9]. Group 2: Sales Performance - In June, BAIC New Energy delivered 14,500 vehicles, a year-on-year increase of 140.65%, with total sales for the first half of the year reaching approximately 67,100 units, up 139.73% [6]. - The ARCFOX brand alone delivered 10,300 vehicles in June, marking a 65.13% increase, while total sales for the first half reached about 55,500 units, a remarkable 211.06% growth [6]. Group 3: Financial Outlook - Despite significant sales growth, BAIC Blue Valley is still facing losses, with projected net losses for the first half of 2025 estimated between 2.2 billion to 2.45 billion yuan [9]. - R&D expenditures have increased from 973 million yuan in 2020 to 1.76 billion yuan in 2024, with a 53.06% year-on-year increase in Q1 of this year [9]. Group 4: Strategic Initiatives - BAIC Group is advancing a dual development strategy of "fuel + new energy" to enhance its market position, with several new models set to launch in the coming months [10][12]. - The company aims to increase the sales ratio of high-profit models, particularly focusing on the ARCFOX and STELATO brands, with a target sales ratio shift from 1:10 to 1:3 by the end of this year [12].

Investment Rating - The report maintains an "Outperform" rating for the automotive industry as of May 11, 2025 [1] Core Views - April saw a record high in passenger car wholesale, with retail sales reaching 1.755 million units, a year-on-year increase of 14.5% [2][8] - The "2025 China Intelligent Automotive Technology Exhibition" was held on May 8, focusing on future research, strategic trends, and technological breakthroughs in the automotive industry [3][60] - The report suggests focusing on companies with technological innovation in smart driving algorithms, sensors, and intelligent cockpits, as well as traditional automakers actively entering the smart vehicle sector [3][63] Summary by Sections Passenger Vehicles - In April, passenger car retail sales were 1.755 million units, up 14.5% year-on-year but down 9.4% month-on-month; cumulative retail for the year reached 6.872 million units, a 7.9% increase [8][61] - Wholesale for April was 2.190 million units, a 10.7% year-on-year increase but down 9.2% month-on-month; cumulative wholesale for the year was 8.468 million units, up 11.1% [8][61] - Recommended stocks include BYD (002594), Geely (0175.HK), and Xpeng Motors (9868.HK) [61] New Energy Vehicles - April retail for new energy passenger vehicles was 905,000 units, a 33.9% year-on-year increase but down 8.7% month-on-month; cumulative retail for the year was 3.324 million units, up 35.7% [8][62] - April wholesale was 1.133 million units, a 40.2% year-on-year increase and a 0.3% month-on-month increase; cumulative wholesale for the year was 3.981 million units, up 42.1% [8][62] - Key stocks to watch include BYD (002594), Geely (0175.HK), and Huayu Automotive (600741) [62] Heavy Trucks - In April, heavy truck wholesale was approximately 90,000 units, down 19% month-on-month but up 9.4% year-on-year; cumulative sales for the year were about 355,000 units, flat year-on-year [10][64] - The report highlights opportunities in the heavy truck sector due to the inclusion of natural gas heavy trucks in the subsidy range, enhancing their economic advantages [10][65] - Recommended stocks include Weichai Power (2338.HK/000338) and China National Heavy Duty Truck Group (000951/3808.HK) [65] Smart Vehicles - The report emphasizes the importance of technological advancements in smart driving and suggests monitoring companies with significant innovations in this area [3][63] - Key companies mentioned include BYD (002594), Geely (0175.HK), and SAIC Motor (600104) for complete vehicles, and Desay SV (002920) and Huayang Group (002906) for components [3][63]

近日，北京现代品牌战略沟通会暨首款纯电平台SUV全球首秀在上海开启，这次活动不仅释放了北京现代"在中国，为中国，向全球"战略，还全方位展示北 京现代在电动化、智能化领域的最新成果。 ELEXIO ELEXIO 在外观上，ELEXIO设计的非常符合中国市场目前的流行审美，不管是前脸贯穿灯的设计，还是方形的日间行车灯，以及整体的造型，都能看出北汽现代想 要在中国新能源市场分一杯羹的决心。 其中，最亮眼的产品是北京现代首款纯电平台 SUV ELEXIO，这款车是北京现代进入新能源元年的首款战略车型，预计今年三季度上市。 再加上通过缩短前悬、增加轴距的设计，结合挡泥板造型以及20英寸轮毂的配置，ELEXIO在外观上非常有"雄壮感"，既符合中国市场目前中大型SUV的主 流设计语言，而且还有一些独特的细节。 在电池设计上，据介绍，ELEXIO通过增大车身尺寸，为电池预留出充足的安全空间，确保其在遭遇侧面碰撞时能够得到妥善保护。 在内饰上，与大多数新能源车相同，ELEXIO内饰取消了仪表台的物理按键，导入更加现代、智能的界面风格，搭配现代感十足的座椅、环抱式设计，大大 提升车内空间的开放感。 再加上车身底盘采用8横7纵网格 ...

Domestic News - During the "May Day" holiday, over 60,000 applications for the old-for-new car subsidy were submitted, driving new car sales to 8.8 billion yuan [2] - In Songjiang, consumers can enjoy a maximum subsidy of 24,000 yuan when purchasing a car, with a tiered subsidy structure based on the car's price [3] - Beijing Hyundai's first pure electric platform SUV, ELEXIO, was officially unveiled and is expected to launch in the third quarter of this year [4] - Tesla's localization rate for parts has exceeded 95%, with over 400 local suppliers contributing to the Shanghai Gigafactory [5] - BAIC Group established the Anpeng Innovation Automotive Industry Investment Fund with a total investment of 1.9 billion yuan [7] - The service fee for the BaaS battery rental package for the Leidao L60 has been drastically reduced to 1 yuan, enhancing its competitiveness [8] - Pony.ai's Robotaxi service will be integrated into the Uber platform within this year, starting in the Middle East [9] - Bangbang Automotive Service and Great Wall Recycling Resources have reached a strategic cooperation agreement to enhance the automotive parts remanufacturing sector [10] International News - The U.S. may soon cancel the electric vehicle tax credit policy, as indicated by House Speaker Mike Johnson [12] - Rivian announced a $120 million investment to strengthen its supply chain near its Normal, Illinois factory [13] - Waymo plans to expand its autonomous taxi service to Atlanta, Miami, and Washington D.C. by 2026, in partnership with Magna to build a new factory [14] - LG Energy Solution aims to accelerate the localization of its supply chain in North America in response to regulatory changes affecting the battery industry [15] Commercial Vehicles - Zero One Automotive delivered its first batch of new energy heavy trucks in Shanghai, marking a significant step in its global strategy [16] - King Long Bus and Yuchai have secured a major order for 234 high-end customized tourist buses to be delivered to Saudi Arabia [18] - Scania's new parts center in Suzhou has officially opened, enhancing service response times and parts delivery efficiency [19] - Dongfeng Liuzhou's Chao Long H5V gas heavy trucks were delivered in bulk, featuring advanced fuel efficiency and lightweight technology [20]