According to recent findings from UK market research firm Rho Motion, global electric vehicle (EV) sales witnessed a 26% year-over-year increase in September, reaching a record high of 2.1 million units. Charles Lester, data manager at Rho Motion, noted that China remains the world's largest EV market, while North America also set sales records as U.S. buyers acted ahead of the expiration of EV subsidy measures at the end of September. Domestically, the China Passenger Car Association released data on October 13 for September 2025, indicating that nationwide retail sales of passenger vehicles reached 2.241 million units, a 6.3% year-over-year increase. From January to September, total retail sales of passenger vehicles stood at 17.005 million units, reflecting a 9.2% growth compared to the previous year. Notably, September's retail sales marked a new record, surpassing the historical peak of 2.19 million units set in September 2017 by 50,000 units. The secretary-general of the China Passenger Car Association, Cui Dongshu, attributed the growth in September sales to two key factors. First, a surge in new product launches drove rapid market expansion. According to incomplete statistics, over 70 new models were introduced in September alone, achieving the highest concentration in history, many of which were priced below consumer expectations, stimulating ongoing consumption in the automotive market. Secondly, on the policy front, the expiration of purchase tax exemptions for new energy vehicles has created urgency for consumers, as next year will see a 5% increase in vehicle purchase tax, further fueling market demand. The robust performance of the automotive sector is fueled by multiple policy benefits converging, creating a resonance of short-term stimuli and long-term support. In terms of short-term incentives, a smooth transition in the vehicle purchase tax policy is setting market expectations. The announcement regarding the technical requirements for exemption from vehicle purchase tax for new energy vehicles from 2026 to 2027 indicates that starting January 1, 2026, the decade-long full exemption policy will switch to a 50% reduction model. Long-term policy support is outlined in the growth stabilization plan from eight departments, which details the industry's development goals set forth in the 'Automotive Industry Stabilization Work Plan (2025-2026)' published by the Ministry of Industry and Information Technology and other departments: a total vehicle sales target of 32.3 million units (a 3% year-over-year increase) and new energy vehicle sales of 15.5 million units (with a 20% growth rate), aiming for a penetration rate close to 50%. Orient Securities believes the transitional vehicle purchase tax policy and the stabilization plan create dual benefits, combined with the upcoming traditional consumer peak season in Q4, the automotive sector is likely to experience a "policy + performance" double boost. Furthermore, this year, some regions have gradually begun to pause or adjust the trade-in subsidies, leading many consumers to hurry to take advantage of the subsidies before they are suspended, resulting in particularly strong growth in EV sales in September. Shen Gang Securities suggests focusing on undervalued leading automotive and component companies poised to benefit from improving performance and highlighting quality core stocks in the electric and intelligent transformation sectors. Therefore, it is recommended to pay attention to domestic autonomous car manufacturers with early advantages in the new energy sector, such as BYD, Changan Automobile, Geely, and Li Auto; leading undervalued component manufacturers with stable performance, such as Huayu Automotive and Fuyao Glass; quality core stocks related to electrification and intelligence, including Desay SV, Ruikeda, Koboda, and Bertley; and opportunities for domestic substitution arising from the "domestic cycle," such as Lingdian Electric Control, Sanhua Intelligent Control, Xingyu Co., and ZTE Electronics. Relevant concept stocks: BYD Company Limited (01211): BYD announced that its production of new energy vehicles in September 2025 was approximately 405,600 units, while sales were about 396,300 units. From January to September, the production of new energy vehicles totaled around 3.2136 million units, up 16.4% year-over-year; sales reached about 3.2601 million units, an 18.64% increase. LI AUTO-W (02015): Li Auto-W announced that it delivered 33,951 new cars in September 2025. In the third quarter of 2025, Li Auto delivered 93,211 vehicles. As of September 30, 2025, Li Auto's historical cumulative delivery volume has reached 1,431,021 units. XPENG-W (09868): XPENG-W disclosed it delivered a record 41,581 smart electric vehicles in September 2025, marking a 95% year-over-year increase and a 10% increase from the previous month, surpassing the milestone of 40,000 monthly deliveries. In the third quarter of 2025, XPENG delivered a total of 116,007 smart electric vehicles, up 149% year-over-year. For the first nine months of 2025, XPENG's cumulative delivery volume reached 313,196 units, reflecting a 218% increase year-over-year. NIO-SW (09866): NIO-SW reported that it delivered 34,749 vehicles in September 2025, setting a new monthly record with a 64.1% year-over-year increase. These deliveries included 13,728 units from the high-end smart electric vehicle brand NIO, 15,246 units from the family-oriented smart electric vehicle brand Le Nao, and 5,775 units from the smart high-end small EV brand Firefly. In the third quarter of 2025, the company delivered 87,071 vehicles, achieving a quarterly high with a 40.8% year-over-year growth. As of September 30, 2025, NIO's cumulative vehicle delivery volume reached 872,785 units.