CITIC Securities' research report on September 5th stated that the passenger vehicle and commercial vehicle terminal prosperity in Q2 2024 exceeded expectations, and sales growth remained strong despite a high base in the same period last year. Both the volume and profit of the industry as a whole increased in Q2 2024, with improvements in economies of scale and costs driving better net income performance than revenue performance. Investment recommendation: The automobile sector is expected to improve, and it is recommended to increase allocation to autos. In terms of volume, the policy of replacing old vehicles with new ones has been strengthened this time, with significant actual stimulus effects. Some local governments have launched relevant boosting policies, coupled with the low base in the same period last year, it is expected that the year-on-year growth rate of passenger vehicle retail sales will expand. In terms of price, the willingness of luxury brands and joint venture brands to follow up with price reductions is weakening, and the trend of price wars is slowing down. We believe that both the volume and price of the automobile sector have improved marginally, and the sector's beta is expected to enter an upward cycle.