Minsheng Securities: The automotive market saw stable growth in April, with hot new energy products gradually being delivered.

Minsheng Securities issued a research report stating that the preliminary calculation of the total market size of narrow passenger car retail sales in April was approximately 1.75 million units, an increase of 14.4% year-on-year, and a decrease of 9.8% from the previous month. The retail sales of new energy vehicles are expected to reach 900,000 units, with a penetration rate of 51.4%. In April, a total of 175,951 vehicles were delivered by 6 sample new energy vehicle companies (excluding Xiaomi), with a year-on-year increase of 59.9% and a month-on-month increase of 2.6%. The overall heat of the car market remained high in the first half of April, with the Shanghai Auto Show opening in the second half of the month; new car models were launched consecutively, and hot new energy products started delivery one by one, which is expected to provide new growth momentum for the new energy market and effectively support the overall car market. Key points from Minsheng Securities: By April 2025, key new energy vehicle companies' delivery volumes have been announced based on disclosed data Zerun delivered 41,039 units in April, an increase of 173.5% year-on-year and 10.6% month-on-month; Xiaopeng delivered 35,045 units, an increase of 273.1% year-on-year and 5.5% month-on-month; Ideal delivered 33,939 units, an increase of 31.6% year-on-year and decreased by 7.5% month-on-month; Aiways delivered 28,301 units, an increase of 0.7% year-on-year and decreased by 17.0% month-on-month; NIO delivered 23,900 units, an increase of 53.0% year-on-year and 58.9% month-on-month; Jingchao delivered 13,727 units, a decrease of 14.7% year-on-year and 11.0% month-on-month; Xiaomi delivered over 28,000 units. Stable growth in the April car market, with new cars launched at the Shanghai Auto Show The automobile market in April saw stable growth, with new cars launched at the Shanghai Auto Show. The preliminary calculation of the total market size of narrow passenger car retail sales in April is approximately 1.75 million units, an increase of 14.4% year-on-year, and a decrease of 9.8% from the previous month. The retail sales of new energy vehicles are expected to reach 900,000 units, with a penetration rate of 51.4%. In April, 6 sample new energy vehicle companies (excluding Xiaomi) delivered a total of 175,951 units, with a year-on-year increase of 59.9% and a month-on-month increase of 2.6%. The first half of April saw continued high heat in the overall car market, with the Shanghai Auto Show opening in the second half of the month; new car models were launched, and hot new energy products started delivery one by one, which is expected to provide new growth momentum for the new energy market and effectively support the overall car market. Surge in sales for new energy vehicles, Zerun maintains the lead Zerun: According to the company's disclosure, 41,039 units were delivered in April, up 173.5% year-on-year and 10.6% month-on-month. Minsheng Securities believes that the company's overall sales growth year-on-year is due to the strong products and cost-effectiveness under 200,000 RMB, including the C10 and C11 models. With the gradual introduction of the B series new car this year, sales are expected to continue to rise. In terms of major models, in March, the C10 delivered 12,000 units, accounting for 33.0% of the company's total delivery that month; the T03 delivered 8,000 units, accounting for 22.6%; the C11 delivered 8,000 units, accounting for 20.9%. In terms of new cars, the Zerun B10 is the only one in its class equipped with a LiDAR, achieving sales of 3,000 units in its first month of listing. Its excellent cost-effectiveness is expected to bring better profitability to Zerun. The Zerun B01 made its first appearance at the Shanghai Auto Show, positioned as a 150,000 RMB level sedan, equipped with LiDAR, and a range of 650 kilometers. Minsheng Securities believes that Zerun has obvious cost-effective advantages in the domestic market, and with the endorsement of the Stellantis brand and channel advantages in the overseas market, it is expected to quickly increase brand recognition overseas and usher in a second growth cycle. Ideal: According to the company's disclosure, 33,939 units were delivered in April, an increase of 31.6% year-on-year and a decrease of 7.5% month-on-month. Minsheng Securities believes that due to the favorable subsidy policy for the mid-to-low-end market and the overall slowdown in the high-end market, the company's sales are under short-term pressure. In terms of major models, in March, the L6 delivered 17,000 units, accounting for 46.9% of the company's total delivery that month; the L7 delivered 9,000 units, accounting for 23.7%. In terms of charging network layout, as of April 27, 2025, there are 2,152 Ideal ultra-fast-charging stations nationwide. The completion of the charging network is expected to help Ideal maintain its competitive edge after the launch of new pure electric products. In terms of new products, the Ideal MEGAHome Family Special Edition and L6 Intelligent Renewal Edition have begun pre-orders. The MEGAHome Family Special Edition, positioned as a large MPV, is priced at 559,800 RMB; the L6 Intelligent Renewal Edition, positioned as a medium-large SUV, starts at 249,800 RMB. Minsheng Securities believes that the sales of the L series models remain stable, and there is still the possibility of achieving high growth after the launch of pure electric models in 2025. Xiaopeng: According to the company's disclosure, 35,045 units were delivered in April, an increase of 273.1% year-on-year and 5.5% month-on-month. Minsheng Securities believes that the performance in April was mainly due to the high number of orders brought by the new car cycle, the strong sales of new models, and the increase in production capacity. In March, the MONAM03 delivered 17,000 units, accounting for 50.0% of the company's total delivery that month; the P7+ delivered 9,000 units, accounting for 25.7%. In terms of new cars, the 2025 Xiaopeng X9 debuted at the Shanghai Auto Show and began accepting orders. The 2025 Xiaopeng X9 is positioned as a medium-sized MPV, with a starting price of 359,800 RMB. NIO: According to the company's disclosure, 23,900 units were delivered in April, an increase of 53.0% year-on-year and 58.9% month-on-month. In terms of major models, in March, the ES6 delivered 3,000 units, accounting for 31.9% of the company's total delivery that month; the ET5T delivered 3,000 units, accounting for 29.0%. In terms of new cars, NIO's new brand new models Firefly and LeDao L60, L90 made their debut at the Shanghai Auto Show, with Firefly officially launched on April 19, starting at a price of 119,800 RMB. Jingchao: According to the company's disclosure, 13,727 units were delivered in April, a decrease of 14.7% year-on-year and 11.0% month-on-month. In terms of major models, in March, the Jingchao 7X delivered 5,000 units, accounting for 35.6% of the company's total delivery that month; the Jingchao 009 delivered 4,000 units, accounting for 23.8%; the Jingchao 001 delivered 3,000 units, accounting for 20.7%. In terms of new cars, the Jingchao 9X made its first appearance at the Shanghai Auto Show and is expected to be launched in 2025Q3. Xiaomi: According to the company's disclosure, over 28,000 units were delivered in April. The new Xiaomi SUV YU7 is expected to be launched in June-July 2025, positioned at the 250,000-300,000 RMB level. It will mainly compete with the Tesla Model Y. The product will be equipped with a 96.3kWh or 101.7kWh battery pack.The range of endurance mileage will increase from 670 to 835 kilometers, and the high-end version will be equipped with dual Nvidia Orin-X chips and LiDAR. Minsheng Securities believes that after the Xiaomi YU7 goes on sale, it will become one of the most competitive products in the 20-30 thousand yuan price range, and is expected to continue the company's sales momentum.End-to-end technology accelerates the application, opening the era of smart driving equal rights End-to-end technology is driving a leap in smart driving capabilities, with smart driving equality as the core theme. Car companies represented by Xiaopeng and Huawei have been continuously iterating and promoting smart driving since 2024. Xiaopeng has domestically launched the first mass-produced "end-to-end" large model. In addition, all manufacturers are actively promoting the popularization and promotion of smart driving, and the era of standard smart driving has arrived. Looking ahead to 2025, advancements in smart driving technology are expected to lower the hardware threshold, enabling smart driving to be applied in mainstream markets below 200,000. Car companies such as Xiaopeng and BYD Company Limited are expected to gain a further differentiation advantage through affordable intelligence in 2025, and increase their market share. Investment recommendation The era of intelligence is here, and there are opportunities for independent technology output. Intelligent capabilities will become an important factor in the competition among car companies. With the emergence of the turning point in Tesla's FSD usage, the accelerated landing of autonomous new forces in urban assisted driving, and Xiaopeng's opening of a new business model; intelligent driving is gradually reaching a triple turning point in technology, user acceptance, and business models. It is optimistic about the relatively leading intelligent layout, product cycle, and brand cycle-up of high-quality independent car companies. Recommended stocks include BYD Company Limited (01211), GEELY AUTO (00175), Xiaopeng Motors (09868), Chongqing Sokon Industry Group Stock (601127.SH), and Ideal Motors (02015). It is suggested to pay attention to Xiaomi Group (01810). Mid-term growth of parts continues to strengthen, optimistic about the new forces industry chain + intelligent electric vehicle increment. Electric intelligence is reshaping the order, with high-quality independent parts suppliers gaining more supporting capabilities through cost-effectiveness and rapid response, while bottleneck technology takes the opportunity to achieve a breakthrough from 0 to 1, speeding up the globalization process and breaking the monopoly pattern of foreign capital. Risk warning New car sales may not meet expectations; the progress of launching new car models by car companies may not meet expectations; the progress of intelligentization may be slower than expected.