On June 4th, JPMorgan released a report on the auto industry, stating that most car companies showed double-digit year-on-year and month-on-month growth in May sales, and gave the industry a rating of "leading". According to the sales data released in May, most car companies saw a year-on-year and month-on-month increase in sales. Among them, the sales volume of nine major car companies increased by 34% and 27.5% respectively. The performance of new automakers was not affected by traditional offseason. Ideal's delivery volume increased by 35.8% month-on-month to 35,000 vehicles, mainly due to the delivery of new model L6. NIO set a new monthly record by delivering 20,000 vehicles throughout May, consistent with the bank's prediction of NIO's May deliveries exceeding 20,000 vehicles, which led to an upgrade to the buy level for the company. Ideal's delivery in June is expected to continue to improve on a monthly basis, and NIO's BaaS preferential policy is expected to support delivery to maintain a level of 20,000 vehicles in June. In addition, the China Association of Automobile Manufacturers predicts that the retail volume of new energy vehicles in May will be around 770,000, a month-on-month increase of 13.7%, and the penetration rate is expected to further increase to 46.7%. As battery makers such as Xiaomi SU7, ZEEKR L6, WM Motor M5/M7, and BYD Qin L continue to increase production capacity, the bank believes that the sales of new energy vehicles will continue to improve. BYD was the top pick in the industry, with the new DM5.0 technology model expected to drive BYD's sales growth to exceed the market's expectations by about 20%, further eroding the market share of Japanese brands. Among new automakers, ideal and NIO are both rated as "buy", supported by their improving sales.