M Idea Investor Feedback on Our "Auto Dealer Bottoming-out" Report While investors believe that China's luxury car dealers will see earnings recovery in 2026 backed by dealer store capacity cuts and increasing Huawei Aito profit contribution, there is less conviction that the Mercedes/BMW new model cycle can bring dealer new car profitability back to 2021-22 highs. We published an Asia Insight report "Fewer Stores + More Models = 2026 Recovery" last week, calling for China's luxury car dealers to bottom in ...

Group 1: Future of Transportation - The IAA Mobility conference in Munich highlights German automakers' efforts to remain competitive in the face of rising Chinese competition, showcasing new technologically advanced and affordable vehicles [2] - VW Group, Mercedes, and BMW presented various new electric vehicles, with VW Group's CEO Oliver Blume expressing confidence in competing in the Chinese EV market [2][3] Group 2: Market Dynamics - Chinese automakers, particularly BYD, have significantly increased their market share in Europe, nearly doubling it over the past year, posing a challenge for German manufacturers [3] - German automakers are introducing new models like the all-electric Mercedes GLC and BMW iX3 to maintain and grow their market presence [3] Group 3: Investment and Partnerships - Hyundai is committed to its joint venture Motional, investing a total of $1 billion after Aptiv's withdrawal, which includes $475 million directly into Motional and $448 million for an equity stake [6] - Hyundai plans to invest an additional $452 million in Motional this year, with further investments expected next year [7]