According to the Huatai Securities Research Report, the share of heavy holdings of automotive sector funds fell to 1.65% in the second quarter of 2026, the lowest since 2021. The valuation level was below 15% in the past 5 years, and positions and valuations were relatively low in history. The research report believes that the main reason for this round of allotment cuts is that the decline in domestic demand has lowered the sector's profit expectations, while the main AI siphon has accelerated the clearance of chips and reduced positions to be completed quickly within a quarter. The four core sub-sectors have all been reduced but the differentiation is obvious: passenger cars have the deepest cuts and the fundamentals are the weakest; commercial vehicle profits have improved with the highest decline in holdings and stock prices; individual stocks that are the most resistant to falling parts and some have independent α have been increased; motorcycles and others are the only overequipped sectors in the automotive secondary sector. According to the research report, sector odds may have reached an extreme value, and there is limited room for downside, and the win rate depends on the sector's fundamental inflection point. The focus is on the improvement in domestic sales sentiment at the end of the third quarter. In the direction, priority is given to commercial vehicle export chains and motorcycle sectors with outstanding exports, as well as individual component stocks with independent α.

According to the Huatai Securities Research Report, the share of heavy holdings of automotive sector funds fell to 1.65% in the second quarter of 2026, the lowest since 2021. The valuation level was below 15% in the past 5 years, and positions and valuations were relatively low in history. The research report believes that the main reason for this round of allotment cuts is that the decline in domestic demand has lowered the sector's profit expectations, while the main AI siphon has accelerated the clearance of chips and reduced positions to be completed quickly within a quarter. The four core sub-sectors have all been reduced but the differentiation is obvious: passenger cars have the deepest cuts and the fundamentals are the weakest; commercial vehicle profits have improved with the highest decline in holdings and stock prices; individual stocks that are the most resistant to falling parts and some have independent α have been increased; motorcycles and others are the only overequipped sectors in the automotive secondary sector. According to the research report, sector odds may have reached an extreme value, and there is limited room for downside, and the win rate depends on the sector's fundamental inflection point. The focus is on the improvement in domestic sales sentiment at the end of the third quarter. In the direction, priority is given to commercial vehicle export chains and motorcycle sectors with outstanding exports, as well as individual component stocks with independent α.