Organization: China's passenger car sales are expected to remain strong.

The Bernstein analyst report states that it is expected that China's wholesale sales of passenger vehicles will reach approximately 29.5 million units by 2025, an 8% increase, including 24 million units for domestic sales and 5.5 million units for exports. Bernstein believes that despite the electric vehicle penetration rate approaching 50%, the bank still holds an optimistic attitude towards the continued popularity of electric vehicles, as the current pricing of electric vehicles is generally lower than traditional vehicles, making it an increasingly attractive choice for Chinese consumers. BYD and Xiaomi Group remain Bernstein's top picks in the electric vehicle sector as "outperforming the market". BYD's strong performance overseas is offsetting the impact of domestic market pressures, while BYD's battery sales to major clients such as Xiaopeng Motors and Xiaomi Group are also strong. Bernstein holds an optimistic view on Xiaomi Group's long-term potential in electric vehicle development following the launch of the YU7 model.