BOCOM INTL published a report stating that based on some published delivery data from domestic car companies in December last year, thanks to the subsidies of the vehicle replacement policy and the scrapping and updating policy, coupled with car companies' efforts to sprint towards annual sales targets, the sales of BYD, LEAPMOTOR, XPeng, and Li Auto reached new highs in December last year. BOCOM INTL indicated that the penetration rate of New energy Fund vehicles in the mainland reached 47% in the first eleven months of last year. With more extended range/hybrid models released, the bank expects that the penetration rate of New energy Fund vehicles may further increase by 2025. However, caution is necessary as the car market enters the sales off-season following the sales sprint in December last year, and intensified competition in the auto market has triggered a price war. Following the interest-free schemes launched by Li Auto and ZEEKR in November last year, BYD provided purchase discounts for some models in December. On January 1 of this year, many car companies launched New Year promotions, with LEAPMOTOR and XPeng offering cash subsidy policies for several of their models. In terms of individual stocks, it is recommended to pay attention to the high-quality symbol BYD’s DM5.0 model and its exports; NIO’s Firefly and L60 production; and XPeng’s M03 and P7+ production.