CITIC Securities: Independent brands continue to impact the million-level market, emphasizing the opportunity to deploy physical AI at a low level.

The research report of CITIC Securities stated that domestic brands continue to impact the super high-end and segmented market, and technological competition is accelerating to enhance product competitiveness. This week, automobile sales showed characteristics of domestic demand pressure and strong exports. This week, new cars were released intensively, and large capacity batteries are accelerating popularization in plug-in hybrid/extended range models, while the threshold for pure electric range has been significantly increased. The automobile sector has been bottoming out sharply since the end of April, and pessimistic expectations for domestic demand may have already been price-in, with continued optimism for the high-end and internationalization of the automobile sector for the whole year. Meanwhile, the bottomed alpha targets in the robotics and intelligent driving sectors have high cost-effectiveness, and the mid-term industry trends are expected to continue to be realized.