CICC: Currently, technology growth and the new vehicle cycle are still the main investment theme in the automotive sector.

CITIC Construction Investment stated that at the current point in time, the industrialization of L4 autonomous driving has become one of the most clear industry trends. The robot sector and the new vehicle cycle continue to be the main focus of investment in the automobile sector. The former, due to the market's lack of attention to industry trends for a long time, is significantly ahead of capital market expectations, with continuous validation of industry trends supporting the sector's upward trend. The latter depends on structural increments such as new vehicles and exports, and there may be potential for recovery or upward movement at the current time. In the passenger car sector, current domestic sales data for passenger cars are relatively flat, with various car companies increasing promotion efforts, with performance expectations and new car expectations becoming the core support of the sector. Xiaomi YU7 has been pre-released, Zunzhe S800 has been officially released, challenging the ceiling of high-end luxury cars in China. In the field of autonomous driving, Tesla will launch a paid fully autonomous driving service in Austin, Texas in June, with plans to expand this service to other cities by the end of the year; continuing to prepare for the launch of fully autonomous driving in Europe this year. Recently, Pony.ai and WeRide have announced expanded partnerships with Uber, accelerating the implementation of Robotaxi services globally; Jiushi and Neolithium are focusing on unmanned driving logistics scenarios. Expectations for L4 technology have been low for a long time, and at the current point in time, the capital market is quickly catching up with industrial progress, with technological iterations, industry landscape, new business models, etc. still evolving, and the sector may be brewing for a new round of upward momentum.