🚨 Onvo Chief: Tesla Model Y L & Li Auto i8 Spark Competition, Opportunity in Six-Seat SUV MarketOnvo's Fei Shen says Tesla's new Model Y L (339,000 yuan, deliveries Sept) and Li Auto's i8 (deliveries started) intensify competition in the six-seat EV SUV market.“The six-seat SUV market is particularly lively in the second half of the year,” Shen wrote on Weibo.“I saw the data from the CPCA a few days ago: the entire pure electric market is growing rapidly year-on-year, while range-extenders and plug-in hybri ...

Core Insights - Xiaomi is successfully entering the electric vehicle market with its YU7 SUV, which has garnered significant demand, leading the CEO to suggest consumers consider other brands for quicker delivery [1][4][6] Group 1: Product Launch and Market Position - The YU7 electric SUV was unveiled in June, following the success of the SU7, and has already received around 240,000 reservations within the first 18 hours of its launch [2][4] - The starting price for the YU7 is approximately $35,300, making it cheaper than Tesla's Model Y RWD, which starts at $36,700 [3] - The YU7 offers a driving range of about 519 miles, significantly surpassing the Model Y's range of 368 miles [3] Group 2: Competitive Landscape - The YU7's launch is expected to exert pressure on Tesla in the Chinese market, particularly affecting the sales of the Model 3 [4][7] - Tesla's deliveries in China fell by 11.7% year-over-year to 128,803 units in the second quarter, indicating potential struggles against rising competition [7][8] Group 3: Consumer Insights and Recommendations - Wait times for the YU7 are reported to be around 56 to 59 weeks, prompting the CEO to advise consumers about potential delays and suggest alternative vehicles for quicker acquisition [5][6] - The CEO's recommendation of competing brands, including Tesla's Model Y, highlights the current demand for Xiaomi's vehicles [6]

Summary of the Conference Call on China's Auto Parts Sector Industry Overview - The conference call focused on the **China Auto Parts Sector**, particularly the earnings performance of suppliers in Q225 and the evolving client mix within the industry [2][3]. Key Points and Arguments Revenue Growth Expectations - Suppliers are expected to post **encouraging revenue growth** for Q225, driven by new model launches and an increasing content value per vehicle (CPV) [2][3]. - **Fuyao** is projected to achieve **10-15% YoY revenue growth** due to overseas market share expansion and rising domestic average selling prices (ASP) [3]. - **Tuopu** and **Sanhua** are forecasted to deliver **mid-to-high single-digit YoY revenue growth**, with Tuopu expected to achieve **20%-plus QoQ revenue growth** from new orders [3]. Margin Concerns - There are significant **margin concerns** due to ongoing price competition in the auto parts sector, with most companies experiencing a decline in gross margins over the past two years [4]. - Although raw material prices have decreased, which could support margins, headwinds remain from price competition and potential cost increases from new plant ramp-ups [4][15]. Client Mix Evolution - The client mix is evolving, with **Xiaomi**, **Li Auto**, and **AITO** expected to become increasingly important for suppliers from FY24 to FY26E [2][7]. - Revenue contributions from these companies are projected to significantly increase, with some suppliers expected to derive **35-40%** of their 2026 revenue from them [7]. Upcoming Catalysts - Key catalysts for the auto parts sector in H225 include: - Delivery of orders for **Xiaomi YU7** - Launch of **Li Auto's i8** and **Tesla's Model Y L** - Strong sales from **Leapmotor** [5]. - Concerns exist that the Xiaomi YU7 could compete with the Tesla Model Y, but it is believed that the YU7 orders will largely offset any potential decline in Model Y sales [5][24]. Humanoid Robotics Supply Chain - The auto parts suppliers are making strides in the **humanoid robotics** space, leveraging their existing technology and relationships with companies like **Tesla** and **JD.com** [8][58]. - Despite a reduction in Tesla's humanoid robot sales volume guidance, there are still catalysts for growth in this area [8]. Stock Implications - The launch of new models and developments in humanoid robotics are expected to act as **share price catalysts** for supply chain companies in the short term [9]. Additional Important Insights - The analysis indicates that **Desay SV** is expected to benefit the most from the Xiaomi YU7 launch, with a projected **16.6%** revenue increase in 2026E [29]. - The report highlights the potential for **Xiaomi YU7** orders to offset revenue declines from existing customers, particularly for suppliers with higher CPV from the YU7 [24][28]. - Risks to the auto parts sector include demand dampening due to lower auto production, price pressure from automakers, and potential product recalls due to quality issues [61]. This summary encapsulates the key insights and projections discussed during the conference call, providing a comprehensive overview of the current state and future outlook of the China Auto Parts Sector.