Core view
In China’s passenger car market, SUV has increased significantly, forming a large market space: in the past decade, SUV has increased significantly, with a compound growth rate of 20% in the past decade, while car sales have basically remained stable. At present, the sales of the two are basically close, showing a pattern that cars and SUVs are two-thirds of the world in the passenger car market. Chinese independent brands also seized the historical opportunity of SUV high growth and launched a number of SUVs suitable for national conditions (such as Harvard H6), thus increasing the market share of independent brands of passenger cars.
China’s auto industry is experiencing a wave of electrification plus the rise of independent brands, and the market share of new forces in car manufacturing has increased rapidly: benefiting from a series of carbon reduction policies such as carbon peak and carbon neutralization, the penetration rate of electric vehicles using cleaner energy has accelerated from 2020: the penetration rate of Chinese Shanxi Guoxin Energy Corporation Limited(600617) cars has increased from 4.47% in 2018 to 13.4% in 2021; The three cities of Weilai ideal Xiaopeng, the new force among independent brands, accounted for from 1.12% to 8.4%.
The competition of vehicle manufacturers has shifted from supply chain control to market demand perception and intelligent ability: the importance of the core competitiveness of vehicle manufacturers is different in different time dimensions: with the Chinese vehicle manufacturers successively filling in the short board at the manufacturing end, the quality control ability of domestic independent brands has been greatly improved. At present, the competitive dimension of Chinese vehicle manufacturers has transitioned to which vehicle manufacturer can better meet the needs of consumers. In the future, with the progress of automatic driving technology, the importance of intelligent construction capacity will become more and more prominent.
Automobile intellectualization includes perception, interaction, decision-making and execution. Building intellectualization requires hardware support such as automobile electronics. At the same time, the value of vehicle software will increase. The investment can follow the principle of hardware before software: integrated identification and verification grows the fastest, and the annual compound growth rate is expected to reach 15%. In addition, ECU (electronic control unit) related to intellectualization and power semiconductor related to electrification are relatively high-quality tracks.
Investors are advised to pay attention to the leading new energy vehicle manufacturers with first mover advantage and the leading companies in the new energy vehicle industry chain such as vehicle vision sensors, power semiconductors, vehicle computing chips and motor electronic control.
