CMSC International: Domestic automobile industry achieved high single-digit growth throughout the year.

The international report released by CMSC stated that the effect of the mainland China's policy of replacing old cars with new ones has been good this year, while the subsidy reduction for new energy vehicles before the end of the year has led to a certain degree of early consumption. It is expected that the annual growth will achieve a high single-digit increase, exceeding market and official expectations at the beginning of the year. Considering the stability of the cross-year growth, the necessity of further stimulating car sales in the fourth quarter has decreased. The bank indicated that sales at the beginning of next year may be disrupted by policy adjustments, but the subsidy intensity and duration of policies such as replacing old cars with new ones can be flexibly adjusted according to market demand. There are still enough policy tools to maintain growth in the automotive industry next year. The bank recommends investing in XPENG-W (09868), GEELY AUTO (00175), MINTH GROUP (00425), BYD COMPANY-100 (01211), and LI AUTO-W (02015).