Huatai Securities: It is expected that with the intensive launch of new cars at the Beijing Auto Show, domestic sales are expected to continue to recover.

Huatai Securities believes that the year-on-year rebound in passenger car sales in March benefited from both domestic and overseas resonance: 1) Domestic sales: the implementation of the old-for-new policy in March was fully implemented, coupled with local additional subsidies for first-time car purchases, leading to a seasonal rebound in the market since late March; 2) Export: global oil price fluctuations have driven overseas demand for new energy vehicles, and domestic brands going global have maintained high prosperity. Looking ahead to Q2, it is expected that with the intensive listing of new cars at the Beijing Auto Show, domestic sales are expected to continue to recover. On the export front, high oil prices are expected to drive progress in overseas oil-electric parity in Europe and Southeast Asia, and China's advantages in new energy vehicles will continue to be highlighted. Taking into account multiple variables, it is recommended to focus on whole vehicle companies with global layout and whole industry chain advantages, strong cost reduction capabilities.