On June 14th, Guolong News reported that China Merchants Securities said in a report that the Beijing Auto Show and policy implementation have boosted the auto market, and May exports remain high. It is expected that the manufacturers will sprint towards the half year target in June, driving sales growth in the industry. The report pointed out that the European Union announced that it will impose additional tariffs on imported electric vehicles from China starting in July. The policy has limited impact on the industry and does not change the trend of Chinese auto companies going global. The tariff rate is lower than the previous market expectations, and manufacturers have taken measures to prevent this. In addition, as the European auto market weakens, Southeast Asia and South America have become new expansion directions for manufacturers, which has kept overall export growth strong. China Merchants Securities believes that in a highly competitive market, global market share will concentrate on leading companies, and the Matthew effect will intensify. From a medium- to long-term perspective, BYD and Fuyao Glass are the first choices for complete vehicles and components, respectively. It recommends BYD as the first choice, believing that the market still underestimates the impact of DM5.0 on gasoline-powered cars. After the new technology platform is fully implemented this year, it will accelerate the subversion of the market pattern. The company has room for doubling its domestic market share and has multiple growth opportunities for exports. The EU tariff policy has limited substantive impact on the company. Secondly, it recommends Xiaomi Auto or Huawei Auto, which have disruptive effects but diminishing marginal benefits in the short term, and related symbols such as Chongqing Sokon Industry Group Stock or Xiaomi. For components, it recommends Fuyao Glass as the first choice, optimistic about its global expansion capability, relative monopoly advantage, strong pricing power, and strong absorption capacity for product innovation dividends catalyzed by electric and intelligent vehicle development.