Hong Kong stock concept tracking | Shanghai continues to offer free applications for new energy license plates, and car companies are racing to accelerate smartification (with concept stocks)

On February 13th, Shanghai held a press conference on the "2025 Shanghai Policies and Measures to Promote Economic Recovery and Improvement". It was announced that a set of incremental policies will be formulated to effectively respond to the uncertainty of external environmental changes. One of the policies proposed was the full implementation of the national and Shanghai's new round of subsidies for replacing old cars with new ones, continuing the implementation of the free application for new energy vehicle license plate quotas until the end of 2025, and vigorously promoting car renewal consumption. According to data from the China Passenger Car Association, in January 2025, the new energy vehicle market achieved sales of 744,000 vehicles, a year-on-year increase of 10.5%. Among them, pure electric vehicles (BEV) achieved sales of 430,000 vehicles, a year-on-year increase of 13.3%; plug-in hybrid electric vehicles (PHEV) achieved sales of 250,000 vehicles, a year-on-year increase of 19.3%. From February 1st to February 9th, the new energy vehicle market sold 95,000 vehicles, an 11% increase compared to the previous year. Cumulatively, sales have reached 95,000 vehicles this year, a 12% increase compared to the previous year. The China Passenger Car Association believes that the sales of passenger cars in the Chinese market in February 2025 are expected to continue to grow steadily, with new energy vehicles becoming the main driver while the traditional fuel vehicle market continues to decline. It is estimated that the retail sales of passenger cars in China in 2025 will reach 23.4 million, with a 2% growth, and the retail sales of new energy passenger cars will reach 13.3 million, with a 20% growth and a penetration rate of 57%. In terms of intelligentization, 2025 is considered the key year for AI in cars. On February 10th, BYD Company Limited announced its intelligentization strategy, launching the "Universal Intelligent Driving" strategy, and announced that all models will be equipped with the "Sky Eye" advanced intelligent driving system, with most models priced above 100,000 yuan being standard and below 100,000 yuan having many options. BYD Company Limited's Chairman and President Wang Chuanfu recently stated that 2025 will be the starting year for universal intelligent driving. In the next 2-3 years, advanced intelligent driving will become an indispensable feature like seat belts and airbags. He believes that the biggest obstacle to the popularization of intelligent driving is the high price, preventing most consumers from experiencing it. Through the universal intelligent driving strategy, BYD Company Limited aims to accelerate the popularization of intelligent driving. It is worth mentioning that, according to statistics, several car brands including Chongqing Changan Automobile, BYD Company Limited, Xpeng Motors, and LEAPMOTOR have proposed related plans for "universal intelligent driving". Institutions believe that the rapid penetration of advanced intelligent driving is expected to popularize in the 100,000-200,000 yuan car market in the next 2 years. Furthermore, with the increasing popularity of DeepSeek, several car companies have recently announced deep integration with the DeepSeek model, accelerating the upgrading of intelligentization. The industry generally believes that 2025 will be the first year of comprehensive AI-based advanced intelligent driving technology, and intelligentization will be the focus for the development of the new energy vehicle industry in the second half, with A.Intelligent driving becoming the direction of industry development. Huatai Securities believes that intelligent driving is one of the most promising applications of AI technology that can be quickly implemented. DeepSeek has achieved breakthroughs in cost and technology, not only bringing technological advances to the field of intelligent driving but also providing inspiration in development strategies. It is expected to catalyze technological innovation and industrial transformation in the field of intelligent driving, accelerating the penetration of advanced intelligent driving. Open source security stated that looking ahead to 2025, there will be some initial pressure at the beginning of the year, but the continuation of policies such as the replacement of old cars with new ones will provide some support for sales, especially expected to be good from Q2 onwards. In terms of structure, (1) the penetration of new energy vehicles is expected to continue; (2) advanced intelligent driving is expected to see accelerated penetration. The potential introduction of Tesla's FSD into China may trigger a ripple effect, promoting leading car companies such as Huawei's series/Xpeng/Ideals to accelerate technological advancement and gradually gain consumer acceptance for intelligent driving. At the same time, the key to accelerating the penetration of intelligent driving lies in reducing costs, and in 2025, it is expected that BYD Company Limited/Xpeng and other companies will vigorously promote the equalization of intelligent driving; (3) short-term exports may slow down, and the relaxation of EU tariff policies is positive, but overseas production capacity deployment will still take time. Related concept stocks: BYD COMPANY (01211): BYD Company Limited announced its intelligentization strategy, launching the "Universal Intelligent Driving" strategy and announced that all models will be equipped with the "Sky Eye" advanced intelligent driving system, with most models priced above 100,000 yuan being standard and below 100,000 yuan having many options. From the seagull priced at 6,980 yuan to the Song L EV priced at 249,800 yuan, BYD Company Limited plans to introduce advanced intelligent driving functions including high-speed navigation and city memory navigation in 21 models. GEELY AUTO (00175): On February 6th, GEELY AUTO announced that its self-developed Xingrui Big Model has completed deep integration with DeepSeek. Following the integration, Geely will distill train the Xingrui vehicle control FunctionCall big model, automotive active interaction side big model, etc. FutureGeelyAI can accurately call upon 2,000 on-board interfaces and provide full-chain services including control, dialogue, and after-sales services based on scenarios. DONGFENG GROUP (00489): On February 8th, Dongfeng Motors announced that its self-owned brands have completed the integration of the full range of DeepSeek large language models and will progressively incorporate it into its self-owned brand models including Dongfeng Lantu, Dongfeng Mingshi, Dongfeng Yipai, Dongfeng Fengshen, and Dongfeng Nanni.