CLSA released a research report stating that based on China's automotive order situation this week, the new vehicle model cycle remains an important catalyst for 2026. Overall, the firm is optimistic about BYD COMPANY-100 (01211), Geely Auto (00175), and Leapmotor (09863) due to their scale advantages and stable average selling prices.

The report noted that Li Auto-W (02015) has committed to accelerating its vehicle pipeline, while Geely Auto's Galaxy series plans to maintain the same new product launch volume next year as this year. However, the firm expects major Original Equipment Manufacturers' (OEMs) product portfolios to gradually stabilize from 2026, benchmarking against BYD COMPANY-100's strategy of prioritizing refreshed models over all-new vehicles, as well as major international OEMs.

The firm believes that as OEMs' New Energy Vehicle (NEV) product layouts become increasingly comprehensive, companies with scale advantages across various price ranges will be most likely to benefit. Additionally, it considers that OEMs adopting dual-track positioning - offering both Internal Combustion Engine (ICE) and New Energy Vehicle models - will hold competitive advantages in 2026 competition, as this provides hedging protection against potential policy changes.