Investment Rating - The report maintains a "Positive" investment rating for the automotive and automotive parts industry [7]. Core Insights - The "Automotive Industry Stability Growth Work Plan (2025-2026)" was issued by the Ministry of Industry and Information Technology and seven other departments on September 12, 2025. The plan aims to enhance the quality and reasonable growth of the automotive industry from both supply and demand sides, promote the industrial application of intelligent connected technology, and conditionally approve the production access of L3 level vehicles [2][4]. - The gradual implementation of policies and regulations is expected to accelerate the growth of advanced intelligent driving. The concept of "equal rights for intelligent driving" is likely to reassess the value of complete vehicles, with intelligent driving becoming a new opportunity for reshaping the market following electrification. Strong intelligent driving vehicles are anticipated to capture a larger market share while enhancing their AI capabilities through data accumulation, thus driving investment opportunities in core segments of the industry chain [2][4]. Summary by Sections Policy and Market Outlook - The plan targets achieving approximately 32.3 million vehicle sales in 2025, a year-on-year growth of about 3%, with new energy vehicle sales expected to reach around 15.5 million, reflecting a year-on-year increase of about 20%. The automotive export is also projected to maintain stable growth [4]. Intelligent Driving Development - The report emphasizes the push for the industrial application of intelligent connected technology, with L3 level intelligent driving expected to accelerate. The plan encourages the approval of intelligent connected vehicles and the establishment of pilot programs for road access, alongside improvements in legal frameworks related to traffic safety insurance [4]. Investment Opportunities - The report identifies two main lines of investment opportunities: 1. **Functionality Enhancement**: The continuous exploration of intelligent driving capabilities and the reduction of costs associated with high-level intelligent driving systems are expected to enhance consumer appeal [4]. 2. **Cost Reduction**: Technological advancements are anticipated to lower the costs of intelligent driving systems, with companies like Xiaopeng and BYD leading the charge in making intelligent driving more affordable [4]. Recommended Companies - The report recommends several companies for investment, including: - **Complete Vehicle Manufacturers**: Xiaopeng Motors, Great Wall Motors, Geely, BYD, Xiaomi Group, Leap Motor, Li Auto, SAIC Motor, and Changan Automobile [4]. - **Parts Suppliers**: Top Group, Bertel, and Xingyu Co., with a focus on companies like Desay SV and Coboda [4].

Group 1 - The Ministry of Industry and Information Technology supports accelerating technological breakthroughs and industrialization of automotive chips, with institutions noting that automotive simulation chips are entering a concentrated release phase. A company has over 200 automotive-grade chips applied in various scenarios such as intelligent cockpits, intelligent driving, intelligent connectivity, vehicle body, chassis, and power systems [1] - Eight departments have issued a document conditionally approving the production access of L3-level vehicles. Institutions claim that the intelligent driving industry has reached a critical point. A company integrates people, vehicles, roads, and clouds, providing a new generation of intelligent connected vehicle solutions covering everything from networked terminals to business platforms and user touchpoints. The company has also independently developed L4-level unmanned electric sightseeing buses [1] - A company is set to release a 1.6T LPO module sample and a 51.2T CPO switch based on commercial scenarios [1]

Core Viewpoint - The article discusses the "Automobile Industry Stabilization and Growth Work Plan (2025-2026)" issued by the Ministry of Industry and Information Technology and other departments, aiming for a stable growth trajectory in the automotive sector, particularly focusing on electric vehicles and overall industry performance [2]. Group 1: Sales and Production Goals - The plan targets an annual automobile sales volume of approximately 32.3 million units by 2025, representing a year-on-year growth of about 3%, with new energy vehicle sales expected to reach around 15.5 million units, a growth of about 20% [2]. - The automotive manufacturing industry's added value is projected to grow by approximately 6% year-on-year [2]. Group 2: Industry Regulation and Competition - The plan emphasizes the need to further regulate the automotive industry's competitive order, including cost investigations and price monitoring, to ensure a healthy market environment [4]. - It aims to strengthen the supervision of product production consistency and address issues related to payment terms between major automotive enterprises and suppliers [4]. Group 3: Smart and Connected Vehicles - The initiative promotes the industrial application of smart and connected vehicle technologies, including trials for L3-level vehicle production approvals and enhancing road traffic safety regulations [5][6]. - It encourages the integration of vehicle-to-everything (V2X) and 5G communication technologies, as well as the large-scale application of the BeiDou system [6]. Group 4: Consumer Promotion and Market Expansion - The plan proposes measures to boost automotive consumption, including support for vehicle trade-ins and the promotion of second-hand vehicle sales through simplified processes [7]. - It encourages the expansion of the automotive aftermarket, including modifications, rentals, and camping vehicles [7]. Group 5: Industry Management and Innovation - The plan suggests optimizing industry management policies and promoting group management among automotive manufacturers to enhance resource allocation efficiency [8]. - It highlights the importance of technological innovation in key areas such as automotive chips, operating systems, artificial intelligence, and solid-state batteries to stimulate consumer demand [9].

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) and eight other departments have released the "Automobile Industry Stabilization and Growth Work Plan (2025-2026)", aiming for a target of approximately 32.3 million vehicle sales in 2025, with a year-on-year growth of about 3%, and around 15.5 million new energy vehicle sales, with a year-on-year growth of about 20% [1][5] Summary by Relevant Sections Domestic Consumption Expansion - The plan emphasizes accelerating the market expansion of new energy vehicles (NEVs), promoting the electrification of public vehicles in 25 pilot cities, and encouraging the addition of over 700,000 new energy vehicles in public transport, taxis, and logistics [2] - It also includes initiatives to enhance NEV adoption in rural areas and optimize purchase restrictions in cities with such policies [2] Supply Quality Improvement - The plan proposes to advance the approval of L3-level vehicle production and improve the management of intelligent connected vehicles, while also enhancing legal frameworks related to traffic safety and insurance [2] - It aims to support enterprises in the automotive, information communication, and transportation sectors to explore new business models based on data [2] Development Environment Optimization - The plan suggests promoting group management among automotive production enterprises to improve resource allocation efficiency and support leading companies in strengthening their operations [2][6] - It includes measures to regulate the management of intelligent connected vehicles and standardize over-the-air (OTA) updates by automotive companies [2] Competition Order Regulation - The plan emphasizes the need for cost investigations and price monitoring, as well as the supervision of product production consistency [3] - It aims to address issues related to payment commitments from key automotive enterprises and to establish a healthy and orderly market environment by combating false advertising and commercial defamation [3] Key Highlights - The plan is characterized by three main aspects: "Precise" understanding of the economic and industrial trends, "Practical" policy measures with 15 work initiatives and over 60 detailed measures, and "Innovative" approaches focusing on high-quality supply to stimulate demand [5] - The overall goal is to achieve a reasonable growth in quantity while effectively enhancing the quality of the automotive industry [5][6]

Core Viewpoint - The Ministry of Industry and Information Technology, along with eight other departments, has issued the "Automobile Industry Stabilization and Growth Work Plan (2025-2026)", focusing on promoting the industrial application of intelligent connected technologies [1] Group 1: Policy Initiatives - The plan emphasizes the development of intelligent connected vehicle applications through integrated "vehicle-road-cloud" pilot projects [1] - It aims to accelerate the construction of connected infrastructure and cloud control platforms [1] - The initiative encourages the adoption of high-performance communication modules such as V2X and 5G in new vehicles [1] Group 2: Technological Advancements - The plan promotes the large-scale application of the Beidou system and encourages various scenario applications in logistics, sanitation, and transportation services [1] - It supports the gradual expansion of cross-regional collaborative applications in key areas [1] Group 3: Regulatory Framework - The initiative includes advancing pilot projects for the access and road use of intelligent connected vehicles [1] - It proposes conditional approval for the production access of L3 level vehicles and aims to improve laws and regulations related to road traffic safety and insurance [1] Group 4: Business Model Innovation - The plan supports companies in the automotive, information communication, and transportation sectors to explore new business models linked by data [1] - It aims to accelerate the cultivation of diversified value chains [1]