CITIC Securities: It is recommended to pay attention to vehicle companies with strong cost pass-through capabilities, superior product structures, and leading global layouts.

CITIC Securities pointed out that at the beginning of 2026, the automotive industry was affected by the unexpected rise in the prices of storage, power batteries, upstream raw materials and other materials. The profit margin in the first quarter is under pressure. The rise in storage prices is due to the demand squeeze from the AI super cycle, and the duration may last throughout the year. The impact on the cost of smart cars is rigid, but the magnitude is probably less than 1%; the rise in lithium carbonate prices also faces cost increases for batteries, with the estimated average cost per vehicle for the whole year of 2026 increasing by about 3000 yuan. However, due to the buffering of lithium carbonate price transmission and the fact that car manufacturers have a certain degree of active adjustment on battery capacity, this impact is not rigid. The rise in copper and aluminum prices is influenced by the abnormal movement of prices of upstream raw materials, with an average increase in cost per vehicle of about 2000 yuan, and the duration is difficult to determine. Additionally, hedging can partially hedge against these impacts. It is recommended to focus on whole vehicle companies with strong cost transfer capabilities, excellent product structure, and leading global layout.