CITIC Securities: The automotive sector is currently experiencing weak performance in the off-season, but structural improvements are expected to mitigate internal competition and boost overseas expansion.

CICC Research report points out that the current automotive sector is experiencing weak performance in the off-season, but structural changes are expected to improve the situation, with expectations for anti-internal competition and overseas expansion. The policy on autonomous driving is expected to accelerate, and the exhibition of the humanoid robot Tesla V3 prototype is impressive. We maintain our previous view that the 26-year-old car policy to trade in old cars for new ones supports domestic demand, and commercial vehicles may benefit more; structurally, the commercialization of AI on the terminal side brings valuation elasticity from 0 to 1, focusing on the reversal of the bottom of the distribution channel cycle difficulties under anti-internal competition.