CITIC Securities' research report highlights the automotive sector's performance, drawing on sales data from major automakers released between March 1 and March 3, 2026. It reveals that sales of major brands declined by 14.7% year-on-year and 21.9% month-on-month in February. The month-on-month decrease is largely attributable to the Spring Festival falling in February, a trend that aligns with market expectations. In terms of structural analysis, large automotive groups with diversified product portfolios exhibited exceptional export performance. Additionally, certain new energy brands, benefiting from favorable model cycles in the latter half of 2025, continued to experience year-on-year sales growth even during the off-season. Looking forward, CITIC Securities anticipates a significant month-on-month improvement in domestic sales, driven by the rollout and execution of detailed local subsidy policies for trade-ins, along with pre-launch promotional activities for major new products. Meanwhile, export performance is expected to maintain its strong trajectory.