Looking back at 2025, the PRMC Forward Mobility Car Index rose further on a stable foundation from the previous year. This underlying logic is not merely a recovery of risk appetite but represents an adjustment process driven by the policy cycle and technology cycle:

Firstly, Marginal support from the policy cycle. Major global economies continuously calibrate expectations between declining inflation and interest rate paths, while domestic signals for steady growth and industrial upgrading are increasingly reinforced, improving industry prosperity expectations and risk premiums in tandem.

Second, Ongoing elevation of the technology cycle. Acceleration in electrification, intelligent technology, power semiconductors, and software capabilities has shifted the competitive focus from “sales expansion” to “system capabilities and long-term winning rates.” The overlay of these two forces has allowed the index to continue its recovery amid fluctuations, anchoring the valuation center more firmly on the mainline of “technological leadership + profit realization.”

Consequently, the secondary index exhibits value rebalancing along the industrial chain. The upstream sector is driven by commodity prices and supply-demand cycles; the midstream sector tests efficiency amid competitive intensity; and the downstream sector consolidates compounding benefits through service-oriented and ecosystem approaches.

As differentiation gradually becomes evident, capital market pricing preferences contract correspondingly. The valuation logic for individual stocks has shifted from "growth narrative" to "delivery capability." Investors are increasingly concerned with whether companies can convert scale advantages into profit quality and transform growth into sustainable cash flows. At the same time, factors such as overseas channel development, localization capabilities, control over key components, and supply chain resilience are beginning to directly affect companies’ operational elasticity and stability amid changes in the external environment. Under this logic, leading performers such as Zhejiang Rongtai, Taotao Automotive, Wuhu Fuzzai, Riying Electronics, and Zhenyu Technology have emerged from the market as capital favorites.

From a macro perspective, the screening logic at the corporate level is further amplified by external variables. The manufacturing cycle and consumption resilience are misaligned between different economies, making it difficult for the recovery pace of automobile demand to be synchronized. Meanwhile, the shift in trade, environmental, and industrial policies has reshaped the boundaries of global supply chains, with tariffs, origin rules, subsidy arrangements, and entry barriers creating systematic constraints that directly impact companies' cost curves, product mix, and overseas market strategies.

At the industry level, the transition in 2025 marks the industry's shift from "incremental expansion" to the pre-phase of "stock competition": the price war continues, with demand increments increasingly derived from rising penetration of new energy and structural upgrades, while profit increments predominantly stem from product structure optimization, overseas market expansion, and the realization of full lifecycle operations (services, finance, subscriptions, and data monetization).

The overarching theme for the index in 2026 is expected to shift from “confidence recovery” to “repricing”. As marginal policy support converges, overseas trade friction persists, and technological/compliance regulations tighten, industry risk premiums will undergo systematic reassessment. The capital market's tolerance for long-term narratives will decrease, with pricing anchors becoming more focused on verifiable profitability quality, cash flow resilience, and delivery cadence.

In other words, the primary source of the index's upward movement will stem from the stability of valuation centers and structural uplift driven by “profit certainty,” rather than the broad-based valuation expansion driven by sentiment. Companies capable of consistently delivering profits and free cash flow in uncertain environments are more likely to become core contributors to the index's resilience.

Within this framework, the rebalancing of the secondary index will evolve from a phase-driven phenomenon into a normalized pattern. The core observation point for the upstream sector will be “cost curves + capacity clearance”. As supply and demand shift from a tight balance to recalibration, price and profit elasticity will revert to fundamentals. The midstream manufacturing sector remains the battleground for price competition, but the key to victory will shift from “scale expansion” to a combination of “platform-based cost reduction + product structure upgrades”. Only those leading companies that can convert scale advantages into efficiency and solidify that efficiency into profits will stabilize their gross profit floor and secure relative pricing power. The focus for downstream channels and services will center on three main lines: “enhancing operational efficiency, improving data-driven engagement capabilities, and increasing subscription penetration”. Participants who can deepen user lifecycle management and transition services and financing from one-off promotions to sustainable recurring cash flows will achieve higher elastic returns as demand rebounds.

Consequently, the competitive landscape among individual stocks will also be restructured. Quality compounders such as CATL, NVIDIA, Uber Technologies, Geely Auto, and BYD, leveraging mature supply chain systems, global layouts, and ample financial strength, can effectively hedge against cyclical risks and stabilize operational rhythms during market volatility, even capturing market share amid an overall industry contraction, further consolidating their leading positions.

Growth Accelerators such as Amprius, Mele Technology, Qianli Technology, NIO, and Wan Feng Auto Wheel will encounter more opportunities arising from the commercialization of new models and technologies. The key lies not in having more cutting-edge concepts, but in achieving faster conversions and clearer unit economic benefits. Only those enterprises capable of quickly translating technological advantages into scalable revenues and improved profit structures will possess the potential for significant performance leaps.

However, mid-tier companies face increasingly severe challenges. A tightening financing environment, intensified price competition, and stricter policies have turned cash flow and compliance costs into stringent survival constraints, making market scrutiny more direct and harsh.

From a macro perspective, emerging markets still offer room for increased mobility rates and expansion of vehicle ownership, providing sustainable incremental support for exports and international expansion. The electrification process in Europe is more driven by institutional and regulatory factors, yet the simultaneous rise in industry protectionism and compliance thresholds compels companies to adapt through more flexible power combination strategies and deeper localization efforts. North American demand remains constrained by interest rates and consumer spending, with recovery paths characterized by "slow increases and heightened differentiation“. Asia's supply chain advantages continue to be a crucial pillar for the global automotive industry; however, in the context of adjustments to trade rules and strengthened origin requirements, “supply chain advantages” are shifting from mere cost advantages to a comprehensive competitiveness anchored in industrial synergy, compliance capabilities, and global operational frameworks.

The competitive environment in 2026 will resemble a “low intensity, long cycle” battle of attrition: price competition is expected to continue in a more subtle and persistent manner, with sustained pressure on the lower-end market and profit margins being repeatedly compressed through multiple rounds of contention. The mid-to-high end market will compete for a new round of pricing power by reconstructing product structures and value systems—systemic values such as intelligent experiences, three-electric efficiency, comfort, and safety will better define premium boundaries and brand tiers than single-point parameters.

Meanwhile, export and overseas expansion will transition from being “growth options” to key levers for “cyclical hedging and structural upgrades.” Their significance lies not only in contributing to sales increases but also in enhancing capacity utilization, achieving cost dilution, and strengthening brand momentum through external expansion, while validating product and organizational capabilities in the global market.