Maruti Suzuki India Ltd.’s Chairman RC Bhargava said the Indian car industry would grow to 6.1 million to 6.3 million units by fiscal year 2030-2031. The share of the small-car market would grow significantly faster than it has over the last five years. Bhargava shared this in his message to shareholders in the company’s 2025-2026 annual report. Maruti Suzuki India Limited is the Indian arm of Japanese automaker Suzuki Motor Corporation. It is the largest automobile manufacturer in India, specialising in small cars.

SMM August 6 News: Metal market: Overnight, domestic base metals rose broadly. SHFE copper rose 0.56%. SHFE aluminum rose 0.29%. SHFE lead was flat at 15,640 yuan/mt. SHFE zinc rose 1.6%. SHFE tin rose 1.7%. SHFE nickel fell 0.17%. Additionally, the most-traded alumina futures rose 2.56%, and the most-traded casting aluminum contract rose 0.13%. Overnight, ferrous metals mostly rose. Stainless steel fell 0.72%. Iron ore rose 1.85%. Rebar rose 0.74%. Hot-rolled coil rose 0.53%. Coking coal and coke: The most-traded coking coal contract rose 0.94%, and the most-traded coke contract rose 0.56%. Overnight, in the overseas market, LME base metals rose broadly. LME copper rose 0.75%. LME aluminum rose 0.81%. LME lead was flat at $1,890/mt. LME zinc rose 2.31%. LME tin rose 2.1%. LME nickel edged down 0.06%. Overnight precious metals : COMEX gold rose 3.74%, and COMEX silver rose 3.34%. Overnight, SHFE gold most-traded rose 3.58%, and SHFE silver most-traded rose 3.72%. OANDA Senior Market Analyst Kelvin Wong said, "The link between gold and oil prices remains, as oil prices have a huge impact on inflationary pressures in the global economy. If we can see a clear roadmap for further de-escalation of the (Middle East) situation, gold prices could continue to rise." Traders now expect a 59% probability of a Fed rate hike at the September 15-16 policy meeting, down from 67% a day earlier. (Jin10 Data APP) Overnight closing quotes as of 7:11 on August 6: Macro front Domestic: [Foreign Ministry: Firmly Opposes US Abusing National Power to Unreasonably Suppress Chinese Enterprises] In response to reports that the US is drafting regulations to suppress Chinese enterprises, Foreign Ministry spokesperson Lin Jian stated on the 5th when answering a reporter's question that China firmly opposes the US abusing its national power to unreasonably suppress Chinese enterprises. A reporter asked: It is reported that the US is drafting regulations to ban the import of China-made new-type optical transceiver modules and is preparing to impose additional tariffs and set a price floor on polysilicon and related products. Given the US's previous sanctions and restrictions on Huawei, how does China assess the planned US actions? What specific measures will be taken to protect the rights and interests of Chinese enterprises? Lin Jian said, China firmly opposes the US overstretching the concept of national security and abusing its national power to unreasonably suppress Chinese enterprises. Protectionism cannot boost US competitiveness. The US's actions severely hinder normal economic and trade exchanges between China and the US and are not in the interests of any party, including US enterprises and consumers. China will continue to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises. (Xinhua News Agency) [Guangxi: Trade-in Policy Boosts Smart Home Appliance Consumption] With the implementation of national subsidies combined with local expansion policies coinciding with the summer consumption peak season, the Guangxi home appliance market welcomed a new round of consumption boom. During visits, it was found that the trade-in policy continued to gain momentum, smart home appliances accelerated their entry into millions of households, and consumption upgrading trends were evident. Since the beginning of this year, Guangxi's consumer goods trade-in program has subsidized 2.061 million units of digital and smart products, 95,000 vehicles, and 2.553 million units of home appliances, with total subsidy funds of 2.96 billion yuan, boosting commodity sales of 26.7 billion yuan. Among these, the proportion of county-level participants reached 45.2%, and the proportion of subsidy amount enjoyed in rural areas accounted for 37.1%, indicating rural consumption potential was being rapidly released. Hong Tao, director of the Institute of Business Economics at Beijing Technology and Business University, stated that the trade-in policy, on the basis of continued policy support, has upgraded to a "demand + experience" dual-drive. The national, local, and enterprise levels have established a triple subsidy linkage system, reducing household replacement costs and stimulating consumption vitality while helping the whole society save energy and reduce carbon, promoting the popularization of green and low-carbon lifestyles. (Xinhua News Agency) [CAAM Initiates Establishment of Autonomous Driving Industry Development Joint Committee] Hosted by CAAM, the 16th China Auto Forum was held in Jiading, Shanghai. During the forum, CAAM officially announced the initiation of the establishment of the "Autonomous Driving Industry Development Joint Committee" and held the launching ceremony. At the ceremony, CAAM stated that the Joint Committee will adhere to the principle of "taking safety as the bottom line, with innovation as the driving force, and using coordination to promote development," working with all industry parties to jointly promote the safe, orderly, and large-scale development of China's autonomous driving industry, contributing industrial strength to building an automotive powerhouse and cultivating new quality productive forces. The Joint Committee sincerely invites OEMs, autonomous driving solution providers, chip and sensor companies, software and communication firms, testing and certification agencies, universities, and research institutes, and other relevant industry chain entities to join in discussing development plans, building collaborative mechanisms, and sharing industrial achievements. (CAAM) [DCE: Coke Options to Be Listed for Trading from September 2, 2026 (Wednesday)] The DCE announced that coke options will be listed for trading starting September 2, 2026 (Wednesday). The position limit for coke options is 5,000 lots. Coke options and coke futures have separate position limits. The combined buy holdings of all call options and sell holdings of all put options, as well as the combined buy holdings of all put options and sell holdings of all call options, in an options contract of a certain month for non-futures company members and clients, must not exceed the position limit for the options product. Positions deemed as acting in concert shall be aggregated for calculation. [CPCA: Preliminary Estimates Show July National Passenger Car Market Retail Sales at 1.506 Million Units, Down 18% YoY] Preliminary data from the China Passenger Car Association (CPCA) showed that from July 1 to 31, national passenger car market retail sales totaled 1.506 million units, down 18% YoY and down 6% MoM. Year-to-date cumulative retail sales reached 10.207 million units, down 20% YoY. National passenger car wholesale volumes by automakers from July 1 to 31 were 2.241 million units, up 1% YoY but down 5% MoM, with year-to-date cumulative wholesale volumes at 14.788 million units, down 5% YoY. (from Wall Street News APP) Dollar: Overnight, the US dollar index extended the decline of the previous trading day to fall 0.17% to 99.69. US private employment growth in July was significantly below expectations, indicating that labor market momentum had cooled somewhat, but wage growth remained resilient, and the overall employment situation remained stable. Data released by ADP Research Institute on Wednesday showed that private sector employment increased by 44,000 in July, below the 65,000 expected in a Bloomberg survey of economists and the lowest level this year, following a revised figure of 95,000 in June. The US government's non-farm payrolls report to be released on Friday is closely watched by the market. If the data is confirmed, the current employment trend would support the Fed's continued focus on still-high inflation. (Wall Street News) Driven by a rebound in new orders and business activity, the US services sector maintained a stable expansion trend in July. Data released on Wednesday showed that the July ISM Services Index rose 0.1 point to 54.1, with a reading above 50 indicating expansion. The new orders growth rate accelerated, and the gauge of business activity rose to a five-month high, indicating consumer demand remained resilient. However, rising service and material costs continued to pressure enterprises. As the temporary deal between the US and Iran broke down, driving crude oil and gasoline prices higher, the ISM Prices Paid Index surged to 70.3 in July. With persistently high costs squeezing corporate profits and affecting consumer spending, some companies may choose to delay hiring. The employment gauge of the institute indicated the most pronounced contraction in employment since March. (Jin10 Data APP) Fed Governor Cook reiterated her stance: if inflation does not slow, she is prepared to raise rates , and warned that policymakers may not have the luxury of waiting for inflation to return to the 2% target. Although Cook supported the Fed's decision to hold rates steady at the July policy meeting, she warned that the longer inflation remains above the Fed's target, the harder it will be to tame. In a speech at an event in Alaska, Cook said, "If I don't see signs that inflation is sustainably declining soon, I am ready to act. With inflation above target for five consecutive years, the risk that inflation becomes entrenched in price- and wage-setting behaviour is rising, which would lead to more persistent inflation that is harder to address." But Cook stated that the fading impact of tariffs, the possibility of lower oil prices, and the easing of pressures related to the AI boom could provide a buffer for inflation, thereby avoiding the need to tighten policy . She said her top priority remains bringing inflation back to the Fed's target. In an interview with CNBC on Wednesday, 2026 FOMC voting member and Minneapolis Fed President Kashkari stated that the Fed should now "start gradually raising" rates to lower inflation and avoid the need for more aggressive hikes in the future. Kashkari was one of three voting members who supported a 25-basis-point rate hike at last week's FOMC meeting. He said that with strong corporate earnings and resilient consumers and labor market, there is no evidence that monetary policy is clearly restrictive, making it time to start gradually raising rates. He stressed that this is not advocating for large rate hikes, but rather hoping for "small steps" to avoid the need for sharp policy tightening in the future if inflation becomes entrenched. He added that he is unsure what action the FOMC will take in September, and incoming data will play a key role. Meanwhile, Kashkari said that Fed Chairman Warsh did not pressure him, once telling him: "Do what you think is right for the economy." (Jin10 Data APP) According to CME's "FedWatch": The probability of the Fed holding rates unchanged in September is 45.6%, while the probability of a cumulative 25-basis-point rate hike is 54.4%. For October, the probability of no change is 33.5%, a cumulative 25 bps hike is 52.1%, and a cumulative 50 bps hike is 14.5%. Macro: Today, data to be released include Switzerland's July seasonally adjusted unemployment rate, Eurozone's June retail sales MoM, US July Challenger job cuts, US initial jobless claims for the week ending August 1, US July Global Supply Chain Pressure Index, and US June wholesale sales MoM. Focus on: Fed Governor Lisa Cook's speech on the economic outlook; 2027 FOMC voting member and San Francisco Fed President Daly's speech. Crude oil: Overnight, oil futures showed mixed performance, with WTI falling 0.91% and Brent edging up 0.08%. Iran and Oman are expected to reach an agreement to reopen the Strait of Hormuz, calming oil prices. Wall Street News mentioned that Iran systematically disclosed more details about negotiations with Oman on new transit arrangements for the Strait of Hormuz for the first time and publicly explained the latest contacts between the US and Iran regarding the strait's reopening. On Wednesday, the 5th local time, Iranian Deputy Foreign Minister Gharibabadi said that Iran and Oman are working on a new arrangement for the Strait of Hormuz that differs from the past 60 years. According to the new route design, commercial vessels, whether entering or exiting the strait, would need to pass through Iranian territorial waters in some sections. According to CCTV News, he stressed that arrangements related to the strait should be decided solely by Iran and Oman, and Iran would never accept the involvement of any external forces. (Wall Street News) The US exported a record volume of distillate fuel overseas last week while domestic inventories fell again, indicating that the global scramble for diesel is increasingly drawing down US supplies. According to data released by the US Energy Information Administration (EIA) on Wednesday, distillate fuel exports rose to 1.9 million barrels per day last week, the highest level on record, surpassing the previous peak set in May. Distillate fuels mainly include diesel, heating oil, and other products. At the onset of the US-Iran war, the global diesel market was thrown into disarray. Global fuel supply was disrupted as crude and product tankers could not pass through the Strait of Hormuz. Since then, months of Ukrainian attacks on Russian refining facilities further exacerbated supply pressures. This has made the US one of the few countries globally with sufficient diesel production capacity to churn out large volumes of fuel and export it overseas. US diesel exports have exceeded 1.5 million barrels per day for five consecutive weeks. Even with refiners running at full throttle to produce diesel, US fuel stockpiles are still falling. As of last week, distillate fuel inventories, on a seasonally adjusted basis, had dropped to the lowest level for the same period since 1996. (Jin10 Data APP)

The latest data from the General Administration of Customs shows that in June 2026, China's air conditioner exports reached 5.11 million units, up 11.5% YoY; cumulative exports from January to June totaled 39.16 million units, down 4.6% YoY.

In the second half of last year, ahead of the halving of the NEV purchase tax rebate, ternary cathode orders climbed steadily, hitting record highs month after month. At that time, the market generally expected ternary demand growth for 2026 to be within 10%. But the actual results for the first half of this year came in much stronger. According to SMM, domestic ternary cathode production reached 493,000 metric tons in H1 2026, up 40% YoY, while global ternary cathode output reached 611,500 metric tons, up 24% . Meanwhile, CAAM data shows that NEV sales in China (including exports) reached 7.445 million units in H1 2026, up only 7% YoY, with domestic sales actually contracting by 13%. Given such modest growth in vehicle sales, where did the strong performance of ternary cathode come from? The answer lies in two key factors: a rising share of premium vehicle models and a rapid increase in battery capacity per vehicle . The halving of the purchase tax rebate has had a greater impact on low-priced vehicles. For A00-class models priced under RMB 50,000, the exemption was a major selling point—now, buyers face an additional tax payment of several thousand yuan, significantly eroding their cost advantage. In contrast, for mid-to-high-end models priced between RMB 200,000 and 300,000, the RMB 15,000 rebate cap still covers most of the tax, so the actual cost increase perceived by consumers is limited . At the same time, trade-in subsidy rules shifted from a fixed-amount structure to a tiered system based on the new vehicle price—higher-priced purchases yield subsidies closer to the cap, effectively steering consumer demand toward the premium segment . As a result, the share of B-segment, C-segment, and SUVs in China's NEV passenger car mix rose from 68.3% in 2025 to 73.6% in H1 2026—and these are precisely the models that predominantly use ternary battery cells. The rising share of premium models also directly lifted average battery capacity per vehicle . In May, the average battery capacity of BEV passenger cars reached 62 kWh, up 11% year-on-year, while PHEV passenger cars reached 37 kWh, up 37%. While automakers have been proactively increasing battery sizes to meet market demand, the more significant driver has been the compositional shift toward premium vehicles. This explains the apparent paradox: vehicle sales growth has been moderate, yet cathode material demand has surged—the key lies in the increase in battery capacity per unit . Overseas markets also contributed to the growth. European NEV sales rose approximately 30% year-on-year in the first half of the year, supported by local subsidy policies, high oil prices that favor NEVs, and the aggressive expansion of Chinese brands. Given that ternary batteries still account for more than 60% of Europe's NEV passenger car market , leading battery manufacturers serving the European market—such as CATL, EVE, AESC, and LGES—have maintained high procurement volumes of ternary cathode materials from China this year. Another notable feature of this year's production schedule has been its atypical seasonal pattern, largely influenced by raw material price volatility and policy shifts. On the raw material front, pricing between domestic ternary battery manufacturers and cathode producers is generally settled using a M-1 month metal price mechanism. This gives battery makers a strong incentive to build inventories ahead of anticipated price increases . For instance, in January, the SMM average monthly price of lithium hydroxide (coarse grains) surged to RMB 147,100 per ton, but the settlement price referenced the December price of RMB 88,800 per ton. This translated into a cost saving of more than RMB 26,000 per ton of cathode material, which is why production remained robust even during a traditionally slow month. A similar pattern played out in May, when the monthly average lithium hydroxide price rose by about RMB 20,000 per ton from the previous month, prompting another wave of restocking and driving cathode orders beyond expectations. On the policy side, the most significant impact came from the removal of the VAT rebate on ternary cathode exports, which pulled a large volume of export orders forward into Q1, breaking the typical seasonal slowdown. Domestic production in Q1 reached 236,000 metric tons, up 47% YoY. Notably, after the rebate was officially withdrawn, overseas orders did not drop sharply—Q2 still posted 34% YoY growth. This resilience can be attributed to two factors: first, overseas battery makers remain heavily reliant on Chinese cathode suppliers , who offer clear advantages in product quality, stable mass-production capabilities, and cost, making it difficult to switch suppliers in the short term. Second, overseas end-market demand remains solid , with popular models in Europe (Volkswagen ID series, BMW Neue Klasse, Renault, Hyundai IONIQ series, Tesla, etc.) and key models in Japan and Korea (Toyota, Hyundai, Kia, Tesla, etc.) continuing to rely on ternary chemistries. With order books full and procurement needs urgent, customers have little room to qualify new suppliers, which has only reinforced existing partnerships. Looking ahead to the second half of the year, the upcoming removal of the VAT rebate on lithium battery exports next year is expected to bring some orders forward into 2026. However, the market has already priced this in, and battery manufacturers have ample time to plan their inventory strategies, so a concentrated surge similar to the one seen ahead of the ternary rebate cancellation is unlikely. The purchase tax rebate will remain at the halved level next year and will not be fully phased out until the year after, so there is no additional pull-forward effect for Q4 2026. With orders already exceeding expectations in the first half and battery makers continuing to build inventories, the traditional "Golden September-Silver October" peak may be less pronounced this year. Still, seasonal patterns persist, and the market's inherent restocking momentum remains, so Q4 still warrants attention. SMM currently forecasts: 1.02 million metric tons of domestic ternary cathode production for 2026, up 24% year-on-year; 240,000 metric tons overseas, down 2%; and a global total of 1.26 million metric tons, up 18% .

★ Macro ★ 01 ★★ [Central Bank Net Withdraws 85 Billion Yuan via Open Market Operations] The central bank today conducted a 15 billion yuan 7-day reverse repo operation, with a bid amount of 15 billion yuan and a winning amount of 15 billion yuan, at an operation rate of 1.40%, unchanged from the previous level. As 100 billion yuan of 7-day reverse repos expired today, a net withdrawal of 85 billion yuan was achieved. 02 ★★★ [A Member of Iran's Revolutionary Guard Killed Repelling Drone Attack] According to Iranian local time on the 8th, the Navy of Iran's Islamic Revolutionary Guard Corps stated that earlier that day, a naval member of the Islamic Revolutionary Guard Corps was killed in the process of responding to an incoming drone in the Mahshahr region of southwestern Iran. On the 8th, the Islamic Revolutionary Guard Corps issued a statement saying that the U.S. military launched airstrikes in the early morning on coastal areas of Iran's Hormozgan Province and some coastal bases and non-military facilities in Mahshahr, violating the ceasefire agreement and breaching the Islamabad Memorandum of Understanding. ★ Industry and Downstream ★ 01 ★★ [CPCA: June Retail Sales of China's Passenger Car Market at 1.602 Million Units] CPCA data showed that retail sales of China's passenger car market in June were 1.602 million units, down 23.2% YoY but up 6.1% MoM. Year-to-date retail sales reached 8.701 million units, down 20.2% YoY. In June, retail sales of internal combustion engine vehicles fell 39% YoY, with pure gasoline cars down 42% and conventional hybrids down 7%. Among combustion engine vehicles, domestic brands fell 39%, mainstream joint ventures fell 39%, and luxury brands fell 39%, all indiscriminately hit by the sharp impact of high oil prices. June retail sales of new energy vehicles fell 9% YoY, with domestic brands down 11%, mainstream joint ventures up 45%, and luxury brands down 11%. The retail sales of domestic economy EVs were significantly impacted by the sharp decline in subsidies. 02 ★★ [H1 Excavator Sales Up Over 26% YoY] Data from the China Construction Machinery Industry Association showed that in June, total excavator sales reached 25,400 units, up 35.3% YoY. Of this total, domestic sales came to 10,900 units, up 33.9% YoY, while exports stood at 14,500 units, up 36.4% YoY. Based on H1 data, since March, excavator sales have exceeded 20,000 units for four consecutive months, with March sales reaching 37,400 units, the highest monthly sales since May 2021. Cumulative sales in the first half reached 152,300 units, up 26.4% YoY. China domestic sales reached 79,000 units, up 20.4% YoY, while exports totaled 73,300 units, up 33.5% YoY. The loader market also sustained its high growth trajectory, with the industry recovery gaining broad-based momentum. Data shows that loader sales across all types reached 15,000 units in June this year, up 24.9% YoY. Cumulative sales of all loader types hit 82,100 units in H1 this year, up 26.7% YoY. 03 ★★ [ Yuxi Xianfu Coke Project Expected to Begin Trial Production in November ] Yunnan Yuxi Xianfu Steel (Group) Co., Ltd. (hereinafter "Xianfu Steel") is currently accelerating construction of its supporting 1-million mt/year coking project, targeting trial production this November. Overall project completion now stands at roughly 80%, with cumulative investment reaching 1.5 billion yuan. 04 ★★ [Shandong Province Coal Mine Capacity Status] In accordance with the requirements of the National Energy Administration's Notice on Establishing a Coal Mine Capacity Registration and Public Announcement System (GN Coal [2013] No. 476) and Notice on Improving the Coal Mine Capacity Registration and Public Announcement System to Carry Out Public Announcements for Coal Mines Under Construction (GN Coal [2017] No. 17), the production and construction coal mine capacity status across the province is hereby announced as follows: As of June 30, 2026, Shandong Province has 76 legally operating or under-construction coal mines, with a total annual capacity of 113.57 million mt. Among these, there is 1 coal mine under construction with a construction scale of 450,000 mt/year, and 75 operating coal mines with a registered production capacity of 113.12 million mt/year. 05 ★★ [ CPCA: China Passenger Car Market Retail Sales Down 23.2% YoY, Up 6.1% MoM in June ] Data released by the China Passenger Car Association (CPCA) shows that nationwide passenger car retail sales reached 1.602 million units in June, down 23.2% YoY and up 6.1% MoM. Year-to-date cumulative retail sales hit 8.701 million units, down 20.2% YoY. Passenger NEV retail sales reached 1.007 million units in June, down 9.4% YoY but up 6.0% MoM. For January-June, passenger NEV retail sales totaled 4.704 million units, down 14.0% YoY. Retail sales of conventional internal combustion engine passenger cars reached 600,000 units in June, down 39% YoY but up 6.3% MoM. Notably, sales of standard hybrid models fell only 7% YoY while surging 24% MoM, a standout performance. ★ Other Hot Topics ★ ⭕ [China Energy Group's Coal Port Departures and Arrivals Both Hit Record Highs in H1] As of June 30, the port segment of China Energy Group has completed cumulative coal arrivals of 148.009 million mt and coal port departures of 147.1 million mt. The group's coal port arrivals and departures both reached new all-time highs for the same period in H1, effectively ensuring smooth and efficient operation of the critical energy transportation channel. Since the beginning of this year, the port subsidiary of China Energy Group has optimized production organization, unlocked port capacity, coordinated resource allocation across three ports, innovated operation models and loading/unloading processes, increased the direct loading ratio and circulation efficiency, and simultaneously expanded market coal transshipment business, driving a steady rise in throughput. In the area of equipment support, it has fully implemented a production equipment full life cycle management system, adopted refined maintenance standards and grid-based accountability mechanisms, built a real-time condition monitoring platform for key equipment, and achieved equipment fault prediction and early warning. This has driven a comprehensive transformation and upgrade of the operation and maintenance model from "reactive repair" to "proactive defense," solidifying the hardware foundation for continuous and stable production. [Turkey Initiates Sunset Review of Anti-Dumping Duties on Vietnamese Stainless Steel Pipes] On July 3, 2026, the Turkish Ministry of Trade issued Communiqué No. 2026/27, announcing the initiation of the first sunset review of anti-dumping duties on stainless steel pipes and other hollow structural profiles originating in Viet Nam, following an application by a domestic producer. The products in question are classified under Turkish Customs Tariff numbers 7306.40.20.90.00, 7306.40.80.90.00, and 7306.61.10.00.00. During the investigation, the current anti-dumping duties will remain in effect. The communiqué takes effect on the date of its publication. *This report is an original work and/or compilation work of SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), which legally holds the copyright and is protected by the Copyright Law of the People's Republic of China, among other laws and regulations, and applicable international treaties. Without written permission, no part of the above content may be reproduced, modified, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to a third party in any form, nor may any third party be licensed to use it. Otherwise, upon discovery, SMM will resort to legal means to pursue liability for infringement, including but not limited to demanding liability for breach of contract, the return of unjust enrichment, and compensation for direct and indirect economic losses. Any or all information contained in this report, including but not limited to news, articles, data, charts, images, sounds, videos, logos, advertisements, trademarks, trade names, domain names, layout designs, etc., is protected by the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and other laws and regulations, as well as applicable international treaties concerning copyrights, trademark rights, domain name rights, commercial data information property rights, and other rights, and is owned or held by SMM and its relevant rights holders. Without written permission, no institution or individual may reproduce, modify, use, sell, transfer, display, translate, compile, disseminate, or disclose the above content to a third party in any form, nor may any third party be licensed to use it. Otherwise, upon discovery, SMM will pursue infringement liability through legal means, including but not limited to demanding the assumption of contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses. The views in this report are derived from information gathered in the market and a comprehensive assessment by SMM's research team. The information provided in this report is for reference only, and risks are borne by the user. This report does not constitute direct investment research advice. The client should exercise caution in making decisions and should not use this as a substitute for independent judgment. Any decisions made by the client are unrelated to SMM. 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According to preliminary statistics from the China Passenger Car Association (CPCA), in the national passenger car market in June, retail volume of new energy vehicles reached 1.037 million units, down 7% YoY. Cumulative figures this year show that new energy vehicle retail volume totaled 4.734 million units, down 13% YoY. Wholesale side, new energy vehicle wholesale volume reached 1.506 million units in June, up 22% YoY; while cumulative wholesale volume this year reached 6.812 million units, up 6% YoY.