Caitong: High-end + export-driven overall quantity, intelligent driving + Siasun Robot & Automation driving industry upgrade.

Caitong released a research report stating that the total demand for passenger cars in 2026 will remain relatively stable, with subsidies for replacing old vehicles expected to continue. The structural growth of passenger cars mainly comes from the mid-to-high-end market and the rapid growth in export sales. Many car companies are beginning to transition to the Siasun Robot & Automation industry. The Siasun Robot & Automation industry is gradually moving from an importation period to a growth period, and companies with transformation capabilities and willingness to transform have more growth space. The report recommends focusing on high-end vehicles, Siasun Robot & Automation, and intelligent driving. Caitong's main points are as follows: Overall stable demand for passenger cars, with increments from high-end and export markets In 2026, the total demand for passenger cars is expected to remain relatively stable, with subsidies for replacing old vehicles expected to continue. The market share of domestic brands and the penetration rate of new energy vehicles are leveling off, and a dynamic balance is gradually forming between domestic and joint venture brands, as well as between fuel vehicles and new energy vehicles. The structural growth of passenger cars mainly comes from two aspects: the mid-to-high-end market, with the proportion of vehicles priced at 150,000 RMB and above gradually increasing, and the ongoing domestic substitution trend in the mid-to-high-end market; and with the establishment of overseas manufacturing plants and the development of localized car models, export sales are expected to continue to grow rapidly. Continuous improvement in technological attributes, with intelligent driving and Siasun Robot & Automation driving industry upgrades In 2026, intelligent driving is expected to enter a new cycle of resonance between China and the US, with China's L2-level intelligent driving standards and L3-level intelligent driving pilots gradually being implemented, and driverless delivery vehicles entering a period of rapid growth; driven by Tesla, the Robotaxi market in the US is expected to experience explosive growth. There is strong technological and customer synergy between the automotive industry chain and the Siasun Robot & Automation industry chain. As the automotive industry chain moves towards a slower growth phase, many car companies are starting to transition to the Siasun Robot & Automation industry, which is gradually transitioning from an importation period to a growth period. Companies with the ability and willingness to transform have more growth opportunities. Incremental growth in commercial vehicles comes from exports, with AI data centers driving diesel engine demand The domestic demand for heavy trucks still faces certain pressure, but with the release of pressure on export sales to Russia, the export sales of heavy trucks in 2026 are expected to recover. The export of medium and large buses is expected to maintain rapid growth, with profit elasticity mainly depending on the European market. As the penetration rate of new energy buses in Europe increases, there is still room for exporting medium and large buses to Europe. The rapid growth of AI data centers has brought incremental demand to areas such as diesel engines. Recommendations for high-end vehicles, Siasun Robot & Automation, and intelligent driving For passenger cars, the recommended targets include Anhui Jianghuai Automobile Group Corp., Ltd., BYD Company Limited, and BAIC BluePark New Energy Technology, with attention suggested for companies such as Xiaomi Group. For Siasun Robot & Automation, recommended targets include Ningbo Tuopu Group, Zhejiang Yinlun Machinery, Landai Technology Group Corp., MINTH GROUP, with attention suggested for Jiangsu Xinquan Automotive Trim, Keboda Technology, Zhejiang Shuanghuan Driveline. For intelligent driving, recommended targets include Bethel Automotive Safety Systems, Horizon Robotics, NEXTEER, Pony.ai, while for commercial vehicles, recommended targets include Yutong Bus Co., Ltd. and Weichai Power, with attention suggested for Sinotruk Jinan TruckH. Risk warning: Subsidy policies lower than expected, uncertainty in overseas exports, Tesla Siasun Robot & Automation lower than expected.