A report from GLMS SEC states that the automotive industry has reached a singularity in intelligent technology, creating opportunities for independent technology output and incubation. Intelligent capabilities are set to become a critical factor in automaker competition. As independent new energy vehicle makers accelerate the deployment of urban assisted driving, the report suggests that intelligent driving is approaching a triple inflection point in technology, user acceptance, and business models. The firm expresses optimism for high-quality independent automakers with relatively advanced intelligent layouts and upward product and brand cycles.

In the mid-term, the growth of auto parts continues to strengthen, with a positive outlook on supply chains for new energy vehicle makers and incremental growth in smart electric vehicle frameworks. Auto parts valuations are currently low, reinforcing their mid-term growth potential. The report prioritizes high-quality clients as follows: Huawei's smart selection > independent brands > new energy vehicle makers > joint venture brands. It also ranks high-quality sectors as: large market space + favorable structure > large market space + unfavorable structure > small market space + favorable structure > small market space + unfavorable structure.

Key points from GLMS SEC are as follows:

January auto market performance was subdued, but new energy vehicle makers outperformed the industry year-on-year. Preliminary estimates from the China Passenger Car Association indicate that retail sales of passenger vehicles reached approximately 1.8 million units in January, down 20.4% month-on-month with a slight year-on-year increase. New energy vehicle retail sales are estimated at 800,000 units, representing a penetration rate of 44.4%. Combined deliveries from five sampled new energy vehicle makers (excluding Xiaomi and Aion) totaled 130,772 units in January, up 17.5% year-on-year but down 28.0% month-on-month, indicating better year-on-year performance than the industry average.

January is typically a low season for sales, with overall performance affected by two main factors: policy-related delays in local government subsidy launches despite the continuation of national subsidies, and limited new model releases. As local subsidies are gradually implemented and new models are launched after the Spring Festival and ahead of auto shows, the firm expects automotive demand to stabilize and recover post-holiday.

New energy vehicle makers demonstrated stable sales, with Leapmotor maintaining its leading position. Leapmotor reported January deliveries of 32,059 units, up 27.4% year-on-year, attributed to the strong performance and cost-effectiveness of its C10 and B01 models priced under 200,000 yuan. In December, the C10 accounted for 26.6% of monthly deliveries with nearly 10,000 units, while the B01 represented 20.9% with 7,800 units. The company plans to launch its flagship SUV, the D19, targeting the premium 300,000-yuan segment in April 2026, followed by its first MPV, the D99, within the same year. In January 2026, Leapmotor's D-series models completed winter testing in Yakeshi, with the D19 achieving a global first in extreme snow scenario testing. The firm believes Leapmotor's cost-effectiveness gives it a clear advantage domestically, while its partnership with Stellantis enhances brand recognition overseas, positioning it for a second growth cycle.

XPeng reported January deliveries of 20,011 units, down 34.1% year-on-year and 38.0% month-on-month. In December, the MONA M03 accounted for 29.5% of monthly sales with approximately 12,000 units, while the G6 represented 8.6% with 3,600 units. At its 2026 global new product launch, XPeng introduced several models, including the 2026 P7+ starting at 186,800 yuan and the G7 super range-extended version starting at 195,800 yuan. In January, three XPeng models received CCC Digital Key certification, making it one of the first Chinese automakers to achieve this recognition.

NIO delivered 27,182 units in January, up 96.1% year-on-year, including 3,481 units from the Ledao brand and 28.07 million units from the Firefly brand. In December, the ES8 represented 46.3% of sales with 22,000 units, the ET5T accounted for 8.1% with 3,900 units, the Ledao L90 made up 8.6% with 4,100 units, and the Ledao L60 contributed 10.5% with 5,000 units. On February 1, 2026, the new ES8 achieved its 60,000th delivery within 134 days. At the end of January, NIO began rolling out an updated version of its world model, NWM, initially covering over 460,000 Banyan platform vehicles. The update enhances foundational driving capabilities for navigation-assisted driving and introduces urban battery swap functionality, improving the user experience.

Li Auto reported January deliveries of 27,668 units. In December, the L6 accounted for 28.6% of sales with 12,700 units, while the i6 represented 36.1% with 16,000 units. In January, Li Auto released OTA 8.2, adding 40 new functions and 25 optimizations across assisted driving, smart cabin, and electric vehicle experiences. As of January 31, 2026, Li Auto had 547 retail centers in 159 cities and 547 service centers in 221 cities. The company also operated 3,966 supercharging stations with 21,945 charging piles nationwide. The firm believes Li Auto's stable L-series sales and expanding overseas presence position it for a return to high growth.

Zeekr delivered 23,852 units in January, up 99.7% year-on-year. In December, the Zeekr 7X accounted for 19.6% of sales with 5,100 units, while the Zeekr 007 represented 10.0% with 2,600 units. The second model based on the浩瀚 super hybrid architecture, the Zeekr 8X, is scheduled for launch in the first half of this year.

Xiaomi reported over 39,000 deliveries in January. On January 29, the first Xiaomi SU7 Gran Turismo 7 model was launched in China. The next-generation SU7 is set for release in April, with pre-sale prices of 229,900 yuan for the standard version, 259,900 yuan for the Pro, and 309,900 yuan for the Max. The new model features upgrades in passive safety and battery security. Xiaomi added nine new stores in January, bringing its total to 484 stores across 139 cities. In February, it plans to open six more stores, expanding to Jiangmen and Zhoukou. As of January 31, the company had 270 service outlets covering 159 cities.

The accelerated application of intelligent driving technology is ushering in an era of accessibility. Since 2025, automakers like XPeng and Huawei have持续推进 iterations and promotions of intelligent driving systems. Manufacturers are actively advancing the普及 and promotion of intelligent driving, marking the arrival of an era where such features become standard. Looking ahead to 2026, advancements in intelligent driving technology are expected to lower hardware costs, enabling its application in mainstream markets under 200,000 yuan. Led by XPeng and BYD, automakers are poised to gain further differentiation against joint venture brands through affordable intelligent features, potentially increasing market share.