中国汽车与- 投资者反馈：处于衰退与创新的边缘-China Autos & Shared Mobility-Investor feedback – On the verge of both recession and innovation

Summary of Key Points from the Conference Call on China Autos & Shared Mobility Industry Overview - The China auto industry is currently facing low conviction levels among investors, with many lacking exposure or selling into any price increases due to ongoing competition and subsidy cuts expected to impact sentiment into 2026 [2][10][12]. Core Companies Discussed - BYD: Received the most meeting requests, with discussions focused on volume outlook and global ambitions. Concerns about market share losses in China persist, although advocates for the company are becoming less vocal [3]. - Geely: Remains a consensus buy but is experiencing a decline amid sector sell-offs, with attention on the Zeekr privatization [3]. - EV Startups: Companies like XPeng, Li Auto, and NIO are preferred among EV players due to their rapid model iteration, AI initiatives, and growing overseas sales [5]. - Suppliers: Hesai and Minth are favored suppliers, although there are concerns about pricing and margin pressures into 2026 [4]. Market Sentiment and Trends - There is a general pessimism in the sector, but this could lead to significant positive catalysts if there are marginal sales improvements or policy renewals [2]. - Investors expect continued nationwide and local subsidies to mitigate the impact of a 5% purchase tax hike, although local stimulus amounts are anticipated to decline by 30-50% year-over-year [10]. - Traditional OEMs are slightly preferred over EV makers due to low expectations and restructuring potential, particularly with endorsements from Huawei [11]. Autonomous Driving and Innovation - The market is increasingly focused on autonomous driving and robotaxi developments, with expectations for regulations on Level 3 (L3) autonomous driving to be announced in the first half of 2026 [14][15]. - Huawei's influence is growing, with many carmakers adopting its smart cockpit and autonomous driving technologies [17][18]. Investment Recommendations - Preferred stocks include: - EV Trio: XPeng, Li Auto, NIO for their innovation and overseas sales potential [5]. - SAIC: Among state-owned enterprises (SOEs), favored for recovering local brand sales [12]. - Hesai: Preferred among parts suppliers due to its positioning in autonomous driving [5]. Conclusion - The China auto sector is at a crossroads, with potential for recovery if investor sentiment shifts positively. The focus on innovation, particularly in autonomous driving and the influence of major tech players like Huawei, could provide significant growth opportunities in the coming years [2][14][18].