Investment Rating - The report maintains an "Overweight" rating for the automotive industry [6][4] Core Views - The automotive industry is expected to see stable growth in consumer demand due to supportive policies and increasing sales of new energy vehicles [16][4] - The report highlights the importance of focusing on leading companies in smart technology and those benefiting from the convergence of technology and model cycles [4][17] - The report suggests monitoring the electric and intelligent segments of the supply chain, particularly in the AIDC liquid cooling industry [4][17] Market Review - The automotive sector rose by 3.24% from November 24 to November 28, 2025, outperforming the overall A-share market [18][21] - The automotive services sector had the highest increase at 3.90%, while commercial vehicles had the lowest at 1.95% [21][18] Industry Data Tracking - In October 2025, total automotive sales reached approximately 3.322 million units, with a month-on-month increase of about 3% and a year-on-year increase of approximately 8.8% [2][27] - The market share of new energy vehicles in October 2025 was around 51.6% [2][34] - Retail sales of passenger vehicles from November 1 to 23, 2025, were approximately 1.384 million units, showing a year-on-year decrease of about 11% [36][16] Industry Dynamics - Notable industry news includes the listing application submitted by Avita Technology and the sales target of 1 million units set by Leap Motor for 2026 [3][46] - Great Wall Motors announced its expansion plans in Europe, aiming to increase annual production to 300,000 units by 2029 [46][3] Company Announcements - Zhongding Holdings signed a strategic cooperation agreement with Fourier Intelligent for humanoid robots [48][47] - Bojun Technology announced the establishment of a subsidiary in Wuhan to better meet customer needs [48][47]

Group 1: Market Performance - The China Securities Intelligent Vehicle Theme Index (930721) rose by 2.20% as of December 1, 2025, with component stocks such as Guanghetong (300638) increasing by 20.01% and Beijing Junzheng (300223) by 17.04% [1] - The Intelligent Vehicle ETF Fund (159795) also saw a rise of 2.14%, marking its third consecutive increase, with a latest price of 1.05 yuan [1] - Over the past week, the Intelligent Vehicle ETF Fund has accumulated a rise of 3.63% [1] Group 2: Company Developments - Leap Motor reported a record high delivery of 70,327 units in November, representing a year-on-year growth of over 75%, maintaining a growth trend for nine consecutive months [3] - Xiaomi Group announced the launch of its embodied AI model MiMo-Embodied, which integrates autonomous driving and embodied intelligence, with Xiaomi's vehicle deliveries exceeding 40,000 units in November [3] - Great Wall Motors introduced the VLA auxiliary driving model and previewed a new generation of the auxiliary driving system, CPMaster [3] Group 3: Investment Insights - Ideal Auto plans to invest 12 billion yuan in R&D for 2025, with over 6 billion yuan allocated to AI [4] - According to GF Securities, as overseas automakers lose market share, they are accelerating their smart technology advancements to enhance competitiveness, while Chinese brands are positioned to benefit from global opportunities in the intelligent vehicle supply chain [4] - The integration of intelligent vehicles and robotics is expected to expand the valuation ceiling of the sector, with the Intelligent Vehicle ETF Fund closely tracking the performance of leading companies in intelligent vehicle applications [4] Group 4: Index Composition - As of September 9, 2025, the top ten weighted stocks in the China Securities Intelligent Vehicle Theme Index (930721) include Chipone (688521), Luxshare Precision (002475), and Top Group (601689), collectively accounting for 48.47% of the index [4][5]

Domestic News - The semiconductor industry in China is undergoing a new transformation driven by markets such as artificial intelligence, intelligent connected vehicles, and quantum computing, requiring higher chip performance, energy efficiency, and reliability [6] - Great Wall Motors launched the VLA advanced driving model, emphasizing its capabilities in understanding commands, recognizing unseen dangers, reasoning, and building trust [7] - Xiaomi introduced the MiMo-Embodied model, the first to integrate autonomous driving and embodied intelligence, showcasing significant advancements in unified modeling across these fields [8] - Avita officially entered the Latin American market, launching the Avita 11 in Brazil with support from local automotive giant CAOA Group [9] - Changan Automobile announced its entry into the Indonesian market, introducing models Deepal S07 and Lumin, and establishing a strategic partnership with Indomobil Group for local operations [11] - Wuling's Bingguo model has begun pre-sales in Malaysia, with two versions offering different battery capacities and ranges, set to officially launch in December [12] - The first large-capacity all-solid-state battery production line in China has been established, capable of producing batteries with energy density nearly double that of traditional lithium-ion batteries, significantly enhancing electric vehicle range [13] - China FAW Group made a strategic investment exceeding 3.6 billion yuan in Zhuoyue Technology, which will continue to operate independently while benefiting from FAW's resources [14] International News - The UK government announced an additional £1.3 billion (approximately 12.11 billion yuan) in electric vehicle subsidies and £200 million (approximately 1.86 billion yuan) to accelerate charging infrastructure, promoting the transition to zero-emission vehicles [15] - The UAE plans to invest $1 billion to expand AI infrastructure in Africa, aiming to enhance its influence and support various sectors including education and agriculture [16] - Tesla has begun rolling out its Full Self-Driving (FSD) software in South Korea, marking its availability in seven countries [17] - General Motors plans to invest approximately $550 million to expand automotive production in the U.S., focusing on increasing output at two facilities in Michigan and Ohio [18] Commercial Vehicles - CATL and SAIC Commercial Vehicle announced a deep strategic partnership, implementing a battery swap model that integrates autonomous driving to enhance logistics efficiency [19] - Foton's Aoling Zhiluan EL cold region version was launched, addressing common challenges faced by electric light truck users in northern regions [20] - Foton introduced the Tunland V7 and V9 pickups in South Africa, marking a significant step in its localized strategy and commitment to the African market [21] - Weichai's new generation light truck, the Blue Whale X7, was launched in Chongqing, designed to meet the unique transportation challenges of the mountainous region [22]

Core Viewpoint - The 2025 Guangzhou International Auto Show has officially opened, showcasing new models from Wei brand, a subsidiary of Great Wall Motors, focusing on new energy and high-end development [1] Group 1: Brand and Product Development - Wei brand has launched a brand renewal plan, emphasizing advancements in technology and service [5] - The new Gaoshan series is positioned as a new energy MPV with features like a flat floor design and third-row seating, equipped with advanced driving assistance and intelligent four-wheel drive technology [3] - The new Lanshan SUV also features the Coffee Pilot Ultra system, which has accumulated 243 million kilometers of driving distance, enhancing safety through AEB functionality [3][8] Group 2: Sales Performance - From January to October 2025, Wei brand's cumulative sales exceeded 82,000 units, showing growth compared to the previous year, with the Gaoshan series leading MPV sales in September and October [6] - The personal user purchase ratio for the Gaoshan series reached 84%, while the Lanshan series has surpassed 110,000 units in cumulative sales [6] Group 3: Technological Advancements - The CTO of Great Wall Motors announced the VLA driving assistance model and the next-generation Coffee Pilot Master system, which will first be applied to Wei brand vehicles [8] - The new system supports voice control, environmental perception, and decision-making reasoning, enhancing user experience through improved interaction capabilities [8]

Core Insights - The 2025 Guangzhou International Auto Show has commenced, featuring the launch of new models from WEY brand, including the new Gaoshan family, Blue Mountain, and Mocha Hi4 [1] - WEY brand, as a pioneer in Great Wall Motors' transition to electrification and premium offerings, has initiated a brand renewal plan focusing on value, image, experience, and service [1] - The new generation of the Coffee Pilot Master (CP Master) advanced driving assistance system, based on the VLA model, will debut in WEY vehicles [1] Sales Performance - WEY brand has achieved consistent monthly sales exceeding 10,000 units since the beginning of 2025, with cumulative sales surpassing 82,000 units from January to October, representing a 200% increase compared to the previous year [1] - The average transaction price (TP) of WEY vehicles has steadily increased since 2021, demonstrating the brand's competitive strength alongside global luxury brands [1] Technological Advancements - The CP Master system is designed to be a master-level travel companion, featuring four core values: 1. "Understanding" through natural human-vehicle interaction via voice control [2] 2. "Visibility" by predicting future road conditions based on current situations [2] 3. "Thinking" with the ability to make human-like driving decisions in complex scenarios [2] 4. "Trustworthiness" by transparently displaying the reasoning process behind driving decisions to users [2] - The introduction of the CP Master system reflects Great Wall's confidence in its technological capabilities and commitment to user safety [2]

Core Insights - The 2025 Guangzhou Auto Show, themed "New Technology, New Life," showcases cutting-edge products and technologies from various domestic and international automotive brands, with WEY brand unveiling its new models and brand rejuvenation plan [1][3][13] Product and Technology - WEY brand introduced three core models: the new Gaoshan family, the new Lanshan, and the new Mocha Hi4, targeting different family user needs and demonstrating a comprehensive product layout [4][5] - The new Gaoshan family aims to penetrate the high-end new energy MPV market, featuring a flexible configuration and innovative designs that enhance interior space and comfort [4] - The new Lanshan is positioned as a "full-scenario NOA smart flagship SUV," equipped with the CP Ultra driver assistance system, which has accumulated 243 million kilometers of assisted driving [5] - The new Mocha Hi4 targets the 200,000-level electric SUV market, focusing on driving quality and user experience [5] Sales Performance - From January to October 2025, WEY brand's cumulative sales exceeded 82,000 units, marking a 200% year-on-year increase, with the average transaction price rising steadily [6] - The new Gaoshan family topped the MPV sales chart in September and October, with 84% of purchases made by individual users, indicating strong market acceptance [6] Brand Rejuvenation Plan - WEY brand's CEO announced a comprehensive brand rejuvenation plan focusing on value, image, experience, and service to enhance brand positioning [7][9] - The brand aims to transition from a "transportation tool" to a "smart partner" for users, with plans to launch a new high-end product series based on a new power platform by 2026 [9] Technological Advancements - The VLA driver assistance model and the new CP Master system were unveiled, showcasing WEY's leadership in intelligent driving technology [10][12] - The CP Master system features capabilities such as natural voice interaction, spatial semantic understanding, and proactive safety measures, enhancing user trust and safety [12] Strategic Positioning - WEY brand is positioned as a "family smart travel partner," aiming to solidify its presence in the global high-end market while promoting the vision of "Technology WEY, Beautiful Life" [15]