CITIC Construction Investment: The automotive sector is in the off-season with weak performance, and the pessimistic sales outlook has bottomed out.

CITIC Securities Research Report points out that the automotive sector is currently in a low season with weak performance. However, recently, market pessimism about sales expectations has gradually diminished, with pessimistic outlooks bottoming out. Structurally, there is a positive outlook on reducing internal competition and improving overseas expansion. Autonomous driving policies are being implemented, and Tesla V3 humanoid robots are approaching launch. We maintain our previous view that the 2026 car replacement policy will support domestic demand, with commercial vehicles potentially benefiting more. Structurally, the commercialization of AI on the demand side (autonomous driving and robots) breaking through from 0 to 1 is expected to bring valuation flexibility.

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