In November, China's new energy vehicle (NEV) production reached 1.88 million units, marking a 20% year-on-year increase. Cumulative NEV production from January to November totaled 14.907 million units, up 31.4% year-on-year.
Domestic power battery installations in November stood at 93.5GWh, rising 39.2% year-on-year and 11.2% month-on-month. Among these, ternary battery installations accounted for 18.2GWh (19.4% of total installations), growing 33.7% year-on-year and 9.9% month-on-month. Lithium iron phosphate (LFP) battery installations reached 75.3GWh (80.5% of total installations), increasing 40.7% year-on-year and 11.6% month-on-month.
The NEV market maintained positive momentum in November, with both production and sales of power batteries achieving year-on-year and month-on-month growth. Driven by year-end seasonal effects, NEV sales are expected to climb further.
**Key Highlights:** - **Production:** November NEV output totaled 1.88 million units (+20% YoY). Cumulative output from January to November was 14.907 million units (+31.4% YoY). - **Sales:** November NEV sales reached 1.823 million units (+20.6% YoY), with a penetration rate of 53.2%. Cumulative sales from January to November were 14.78 million units (+31.2% YoY), with a cumulative penetration rate of 47.5%. - **Exports:** November NEV exports surged to 300,000 units (+~260% YoY, +17.3% MoM), including 294,000 new energy passenger vehicles and 7,000 commercial vehicles. Cumulative exports from January to November hit 2.315 million units (+~100% YoY).
**Power Battery Performance:** - **Production:** Combined output of power and other batteries in November was 176.3GWh (+49.2% YoY, +3.3% MoM). Cumulative output from January to November reached 1,468.8GWh (+51.1% YoY). - **Sales:** Total battery sales in November were 179.4GWh (+52.2% YoY, +8.1% MoM), with power battery sales at 134.0GWh (+52.7% YoY, +7.8% MoM). Cumulative sales from January to November were 1,412.5GWh (+54.7% YoY). - **Exports:** November battery exports totaled 32.2GWh (+46.5% YoY, +14.1% MoM), including 21.2GWh of power battery exports (+70.2% YoY, +9.4% MoM). Cumulative exports from January to November were 260.3GWh (+44.2% YoY).
**Installations:** November power battery installations grew 39.2% YoY and 11.2% MoM to 93.5GWh. Cumulative installations from January to November reached 671.5GWh (+42.0% YoY).
**Investment Recommendations:** With rapid growth in downstream demand for lithium batteries, power battery manufacturers and key material suppliers are poised to benefit. Recommended stocks include CATL (300750.SZ), BYD (002594.SZ), Gotion High-Tech (002074.SZ), EVE Energy (300014.SZ), CALB (03931), Hunan Yuneng (301358.SZ), and Tinci Materials. Related stocks include Dingsheng New Materials (603876.SH) and Tianji Holdings (002759.SZ).
**Risk Warning:** Potential underperformance in NEV downstream demand and slower-than-expected development of new technologies.
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