CITIC Construction Investment: The automotive sector is in a weak season with pessimistic sales expectations hitting bottom.

CITIC Securities Research Report points out that the current automobile sector is in a weak performance in the off-season, but recently, the market's pessimistic expectations for sales have gradually softened, with pessimistic expectations bottoming out. The structural view is that the reverse circulation and overseas expectations have improved, and the policy on autonomous driving has catalyzed landing, with the humanoid robot Tesla V3 nearing launch. We maintain our previous view that the 26-year-old automobile replacement policy supports domestic demand, and commercial vehicles may benefit more. Structurally, the commercialization of AI on the end side brings valuation elasticity in the breakthrough from 0 to 1.