Securities Star Weekly Report on the New Energy Vehicle Industry: According to Shanghai Metals Market, this week, the price of ternary materials experienced a weak and volatile trend. From the raw material side, the price of nickel sulfate weakened slightly, while the price of cobalt sulfate temporarily stabilized. The prices of lithium carbonate and lithium hydroxide rebounded at the beginning of the week, but the increase was limited, and they fell again on Thursday, causing the center of gravity of ternary material prices to shift slightly downward. In terms of transactions, as the National Day holiday approaches, some manufacturers have completed order signing and stockpiling in the previous two weeks and are currently in the delivery stage; others are conducting small-scale stockpiling before the holiday, with overall purchases primarily driven by immediate needs.

01, Brokerage Views

Guosheng Securities pointed out that in 2026, with the implementation of the 'Two New' policies, subsidies will shift from fixed amounts to being proportional to vehicle prices. The new energy vehicle purchase tax will be adjusted from zero to a 50% reduction, marking a structural adjustment in domestic vehicle purchase policies. Significant pressure is evident on the domestic demand side, with passenger vehicle retail sales in the first eight months declining by approximately 21% year-on-year. In contrast, automakers' overseas strategies continue to be implemented, coupled with rising fuel prices boosting overseas demand. Passenger vehicle/new energy vehicle exports in the first eight months reached 6.25 million/3.44 million units, surging by 72%/120% year-on-year, exceeding expectations. The export market shows clear structural differentiation, with rapid growth in the Russian and Brazilian markets and steady breakthroughs in the European market. The ability of automakers to deploy overseas has become a core factor differentiating performance and valuations within the year.

Central China Securities believes that the penetration rate of new energy vehicles continues to reach new highs. In August 2026, production and sales of new energy vehicles reached 1.653 million and 1.643 million units, respectively, up by +18.9% and +17.8% year-on-year. The new energy penetration rate reached 60.6%, an increase of 0.2 percentage points month-on-month, continuing to set a new historical high. The investment rating for the industry remains 'in line with the market.' In August, the automotive industry exhibited a operational pattern of 'domestic demand bottoming out, strong external demand, and structural differentiation.' Exports remained the strongest driver, surpassing one million units for three consecutive months. Domestic demand saw an expanded year-on-year decline amid a high base from the same period last year and wait-and-see sentiment, but it improved month-on-month. The new energy penetration rate reached a new high after surpassing 60%, with battery electric vehicles significantly outperforming plug-in hybrids.

02, Macro Events

Initiative on Greater Bay Area Hydrogen Vehicle Highway Toll Discounts and Cross-Provincial Mutual Recognition Released: Promoting Free Highway Tolls for Hydrogen Vehicles

The work deployment meeting for the Greater Bay Area hydrogen energy comprehensive application pilot city cluster was held in Guangzhou on September 22. During the pilot period, the city cluster aims to promote 16,000 hydrogen fuel cell vehicles and construct 100 new hydrogen refueling stations. Additionally, Guangzhou initiated the Initiative on Greater Bay Area Hydrogen Vehicle Highway Toll Discounts and Cross-Provincial Mutual Recognition. The initiative proposes drawing on the pioneering experiences of provinces and cities such as Hubei and Hainan to encourage localities within the city cluster, including Guangdong, Fujian, and Hunan, to formulate and implement relevant policies based on actual conditions, offering toll exemptions for eligible hydrogen vehicles on highways. It also advocates for the establishment of hydrogen refueling stations along the national zero-carbon road transport corridor, striving to gradually reduce the terminal hydrogen cost to below 25 yuan per kilogram. Furthermore, it explores the establishment of a cross-provincial mutual recognition mechanism for highway toll discounts among the five provinces in the city cluster, aiming to lead the way in breaking down inter-provincial policy barriers and creating a typical demonstration of a hydrogen highway corridor in the pilot city cluster.

Minister of Commerce Wang Wentao Meets with President of the German Association of the Automotive Industry Müller

Minister of Commerce Wang Wentao met with President of the German Association of the Automotive Industry Müller on the morning of September 21. The two sides exchanged views on Sino-German automotive industry cooperation and Sino-European economic and trade relations. Wang Wentao stated that the Sino-German automotive industries are deeply intertwined and highly integrated in terms of interests, offering broad prospects for cooperation. German automakers are welcome to deepen their presence in the Chinese market, strengthen cooperation with Chinese partners, and jointly promote the global automotive industry's transition toward green and intelligent development. The Chinese government supports Chinese automakers' investments in Europe and hopes that Germany and the EU will create a fair, open, and non-discriminatory business environment. Wang Wentao also emphasized that China is not the root cause of the economic and trade issues faced by the EU but rather a partner in jointly addressing them. He expressed hope that the EU would not choose a protectionist path, restrict or close markets, and lead to mutual market closures globally. China is committed to exploring solutions to relevant issues, including those in the automotive sector, under the framework of the Sino-European trade and investment consultation mechanism, based on the principles of compliance, balance, and non-discrimination.

Hainan's New Energy Vehicle Penetration Rate Exceeds 66%; Continues to Advance the 2030 Island-Wide Ban on Fossil Fuel Vehicle Sales

On September 22, at the 2026 World New Energy Vehicle Conference held in Haikou, Hainan, Feng Fei, Secretary of the Hainan Provincial Party Committee, stated that Hainan would continue to anchor the green, high-end, and international development of new energy vehicles. Feng Fei introduced that Hainan's new energy vehicle penetration rate has exceeded 66%, and the province will strive to advance the island-wide ban on fossil fuel vehicle sales by 2030.

03, Industry News

CPCA: National Passenger Vehicle Manufacturers' Wholesale Volume Reached 1.001 Million Units from September 1-20

On September 23, according to data from the China Passenger Car Association (CPCA), from September 1-20, national passenger vehicle manufacturers' wholesale volume reached 1.001 million units, down 19% year-on-year but up 21% month-on-month. Year-to-date wholesale volume reached 18.184 million units, down 6% year-on-year. Retail sales from September 1-20 reached 878,000 units, down 22% year-on-year but up 8% month-on-month. Year-to-date retail sales reached 12.593 million units, down 21% year-on-year. National passenger vehicle manufacturers' new energy wholesale volume from September 1-20 reached 740,000 units, up 8% year-on-year and 25% month-on-month. Year-to-date new energy wholesale volume reached 10.518 million units, up 9% year-on-year. New energy vehicle retail sales from September 1-20 reached 596,000 units, down 9% year-on-year but up 14% month-on-month. Year-to-date new energy retail sales reached 7.27 million units, down 12% year-on-year. From September 1-20, 2026, the retail penetration rate of the national new energy market was 67.9%; the new energy manufacturer wholesale penetration rate was 73.9%.

National Energy Administration: Total Number of Electric Vehicle Charging Infrastructure (Guns) in China Reached 24.223 Million by the End of August

On September 23, the National Energy Administration released data on China's electric vehicle charging facilities for August 2026. According to data from the national charging facility monitoring service platform, by the end of August 2026, the total number of electric vehicle charging infrastructure (guns) in China reached 24.223 million, a year-on-year increase of 39.6%. Among them, public charging facilities (guns) numbered 5.16 million, up 19.5% year-on-year, with a total rated power of 262 million kilowatts and an average power per gun of approximately 50.69 kilowatts. Private charging facilities (guns) numbered 19.063 million, up 46.3% year-on-year, with a reported installed electrical capacity of 163 million kilovolt-amperes.

Cui Dongshu from CPCA: Current Energy Density Range of Mainstream Batteries for Pure Electric Vehicles is Between 125 and 160Wh/Kg

On September 21, Cui Dongshu, head of the China Passenger Car Association, stated in an article that in August, China's total production of power and other batteries reached 237GWh, a year-on-year increase of 33%. From January to August, total production reached 1524GWh, up 32% year-on-year. Currently, the energy density range of mainstream batteries for pure electric vehicles is between 125 and 160Wh/Kg, with particularly notable performance in the third quarter, where batteries with an energy density of 140 to 160Wh/Kg accounted for 51%, a year-on-year increase of 14 percentage points.

Company Updates

Chery Executive Restructuring to Further Advance Globalization 3.0 Strategy

On September 23, Chery Holdings and Chery Automobile announced executive restructuring: To further advance Chery Automobile's Globalization 3.0 strategy and strengthen system synergy and resource empowerment within Chery, Zhang Guozhong has been transferred to serve as Executive Vice President of Chery Holdings Group Co., Ltd.; Zhang Guibing has been appointed as Executive Vice President of Chery Automobile Co., Ltd.

Trumpchi E7 Officially Launched, Priced Between 169,800 and 215,800 Yuan

On September 22, Trumpchi E7 was officially launched, offering four configurations with official guide prices ranging from 169,800 to 215,800 yuan and limited-time official benefits starting at 161,800 yuan. Trumpchi E7 is equipped with a 1.5T plug-in hybrid power system, featuring a 1.5T engine with a maximum power of 125kW. It offers two powertrain options: single-motor and dual-motor. The single-motor model has a maximum power of 205kW, while the dual-motor model has a maximum power of 425kW. The vehicle is available with two battery options: 28.3kWh and 45.975kWh, providing CLTC pure electric ranges of 161km, 261km, and 259km, respectively. Additionally, the vehicle supports fast charging and 6kW external power discharge, covering various scenarios such as daily commuting, long-distance travel, and outdoor power usage.

Doubao Smart Cockpit Debuts; Roewe D7 EV Starts Pre-sales

On September 21, SAIC Motor's Roewe D7 EV officially started pre-sales, offering three configurations with pre-sale prices ranging from 137,800 to 152,800 yuan. As Roewe's new large five-seater SUV tailored for family users, the vehicle will debut the Doubao screen, enabling the in-car robot to have body language such as turning, swinging, and shaking its head through expressive visuals and physical hardware movements, combined with sound to form a triple anthropomorphic expression of 'actions + expressions + sound.' This marks the first embodied realization of Doubao in a cockpit scenario. The vehicle is also equipped with the latest Momenta R7 world model, working in tandem with the Doubao cockpit assistant. In terms of power, the vehicle adopts an extended-range power solution, offering a CLTC pure electric range of 320 kilometers and a combined range of up to 1480 kilometers, eliminating the need for frequent refueling during long-distance travel.

Industry Performance

Industry Valuation

Raw Material Prices

Spot Prices of Lithium Compounds

Positive Electrode Material Prices

Electrolyte Prices

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