CITIC Securities: Passenger car exports are expected to continue to exceed expectations, and domestic demand is also expected to gradually recover.

CITIC Securities research report pointed out that domestic demand for automobiles will continue to grow in 2025, with impressive export performance, significantly driving the operating quality of automobile companies. In the first quarter of 2026, domestic demand will be under short-term pressure due to the impact of subsidy policy adjustments; but after the start of the Middle East conflict, the rise in oil prices will significantly increase overseas demand for new energy vehicles. We believe that in the next few quarters of 2026, passenger car exports are expected to continue to exceed expectations, and domestic demand sentiment is also expected to gradually recover; leading companies in the sector will show strong market share and profitability , and industry leading effects will also be further enhanced. We continue to recommend: 1) passenger car companies leading in overseas new energy expansion and brand premiumization; 2) leading commercial vehicle companies with both cyclical upturn and long-term profit space opening; 3) component companies with stable operations actively expanding into new fields such as robotics, liquid cooling, and AI energy; 4) leading companies in the motorcycle industry upgrading products and accelerating overseas expansion.