Huatai Securities: Geopolitical disturbances may temporarily suppress demand for automobile exports. It is recommended to focus on two major investment directions.

Huatai Securities research report states that overseas markets have become a core path for the growth and advancement of Chinese automotive companies. Short-term geopolitical factors such as disturbances like the US-Iran conflict may suppress overall sales performance. It is estimated that the export volume to the Middle East market may be affected by around 300,000 vehicles by 2026, in addition to fluctuations in oil prices. The domestic demand for fuel cars may face downward risks, but with the driving force of energy efficiency advantages, the incremental increase in new energy vehicles is expected to partially offset this. Historical reviews also indicate that Chinese automotive companies are expected to seize opportunities and reshape regional market share by taking advantage of their forward-looking global market layouts after the situation calms down. It is recommended to focus on two major investment directions: complete vehicle companies with advantages in the entire industry chain and strong cost reduction capabilities; China's new energy vehicle export companies actively expanding into global markets and potentially benefiting from the high growth of the European new energy market.