- China Merchants Securities International reports a moderate improvement in domestic automobile demand forecasted for 2H25, shifting towards stable demand by 2027.
- The sector, currently seen as undervalued, is expected to benefit from recent industry policies and is entering a favorable two-year positioning window, with GEELY AUTO as the top pick, alongside BYD COMPANY and XPENG-W.
- As domestic demand stabilizes, leading companies should sustain growth through localized production and expanded product offerings, while key auto parts firms are also favored for their overseas exposure and growth potential.
