Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights a significant growth in the European electric vehicle (EV) market, with September 2025 sales reaching 307,000 units, a year-on-year increase of 34.7% [5][14] - The penetration rate of new energy vehicles in Europe has risen to 31.8%, up by 5.8 percentage points year-on-year [14] - The report emphasizes the ongoing support from government policies and subsidies across various European countries, which are expected to sustain demand for electric vehicles [15][41] Summary by Sections Electric Vehicle Sales - In September 2025, the sales of new energy vehicles in nine European countries reached 307,000 units, representing a year-on-year growth of 34.7% [5][14] - The breakdown includes 198,000 battery electric vehicles (BEV), up 22.8% year-on-year, and 108,000 plug-in hybrid electric vehicles (PHEV), which saw a remarkable increase of 63.6% [14] Country-Specific Insights - **Germany**: BEV sales reached 45,000 units in September, a year-on-year increase of 31.9%, with a penetration rate of 19.3% [16] - **United Kingdom**: BEV sales were 73,000 units, up 29.1% year-on-year, with approximately 25% of BEV models qualifying for subsidies [19] - **France**: BEV sales reached 31,000 units, a 12.8% increase year-on-year, with the highest market share of 22.3% [22] - **Italy**: PHEV sales surged by 165.8% year-on-year, with a total of 11,000 units sold [33] - **Spain**: BEV sales increased by 59.7% year-on-year, driven by new model launches and promotional activities [37] Investment Recommendations - The report recommends investments in lithium battery companies such as CATL, Yiwei Lithium Energy, and Xinwangda, as well as in lithium materials and structural components [41] - Specific beneficiary stocks include Hunan Youneng, Fu Lin Precision, and others across various segments of the electric vehicle supply chain [41][42]

Investment Rating - The investment rating for the power equipment industry is "Positive" (maintained) [1] Core Insights - The European electric vehicle market is experiencing a recovery in 2025, with a 26% year-on-year increase in new energy vehicle sales in the first half of the year, totaling 1.33 million units [5][14] - The report highlights significant growth in battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) sales across various European countries, driven by government incentives and manufacturer discounts [15][20][25][35][43] Summary by Sections 1. New Energy Vehicle Sales in Europe - In the first half of 2025, new energy vehicle sales in nine European countries reached 1.33 million units, a year-on-year increase of 26% [14] - In June 2025, sales reached 273,000 units, with a penetration rate of 28.9%, up 6.5 percentage points year-on-year [14] - BEV sales accounted for 872,000 units, up 25.6% year-on-year, while PHEV sales reached 459,000 units, up 27.6% [14] 2. Country-Specific Insights - **Germany**: BEV sales in the first half of 2025 totaled 249,000 units, a 35.1% increase year-on-year, supported by Volkswagen's electric transformation and government subsidies [16] - **United Kingdom**: BEV sales reached 225,000 units in the first half of 2025, up 34.6% year-on-year, aided by the reintroduction of electric vehicle subsidies [20] - **France**: BEV sales were 149,000 units in the first half of 2025, down 6.5% year-on-year, but expected to improve with the return of social leasing plans [25] - **Spain**: BEV sales increased by 84% in the first half of 2025, driven by new model launches and promotional activities [43] 3. Investment Recommendations - The report recommends investing in lithium battery companies such as CATL, Yiwei Lithium Energy, and Xinwangda, as well as lithium material companies like Hunan Youneng and Huayou Cobalt [47] - Specific companies are highlighted for their potential benefits from the growing electric vehicle market, including those involved in battery components and electric drive systems [47][48]