Huaxi Securities research reports indicate: 1. In terms of whole vehicles: In 2024, the overall demand for the automotive industry is still promising, with both domestic and export demands expected to continue to grow. The consumption upgrade on the demand side and the smart electrification on the supply side bring about transformative development opportunities for independent brand vehicle and auto parts companies. As the market enters the peak period of replacement, 80% of replacement users tend to upgrade consumption, boosting the proportion of high-value models and raising the average transaction price; in addition, in the era of smart electrification, independent car companies have a leading technological advantage and are expected to benefit fully. It is recommended to pay attention to: Chongqing Changan Automobile, Geely Auto, BYD, among others. 2. In terms of auto parts: The cost advantages of domestic auto parts companies are still evident, with significant opportunities in domestic substitution and auto parts exports. At the same time, benefiting from consumption upgrade, the demand for electrification, smartification, comfort, and high-end auto parts products will increase significantly in the domestic market, bringing strategic opportunities for domestic auto parts companies. Recommendations: 1) Beneficiaries of deep localization: Zhejiang Yinlun Machinery, Jiangsu Xinquan Automotive Trim, among others; 2) Beneficiaries of parts upgrade demand: Ningbo Tuopu Group, Changzhou Xingyu Automotive Lighting Systems, among others.