Futures: Overnight, LME lead opened at $1,905/mt. During the Asian session, LME lead consolidated around the daily average line. Entering the European session, LME lead dipped slightly to $1,883/mt, then fluctuated upward. Around midnight, after moving sideways, LME lead futures were dominated by bulls, with the center gradually moving higher to a peak of $1,926/mt, and finally closed at $1,925/mt, up $22/mt, or 1.16%. Overnight, the most-traded SHFE lead contract opened higher with a gap at 16,450 yuan/mt. In early trading, SHFE lead prices plunged rapidly, hitting a low of 16,320 yuan/mt before a slight correction. Thereafter, bulls and bears competed, and SHFE lead prices saw wide swings within the 16,355-16,405 yuan/mt range. At the end of the night session, SHFE lead prices fluctuated upward, but due to strong bearish momentum, turned to fluctuate downward and closed at the low of 16,405 yuan/mt. It posted a long upper-shadow bearish candle, up 90 yuan/mt, or 0.55%. On the macro front: 1. Trump: Once the Iran war ends, oil prices will fall rapidly like a rock. 2. Iran's foreign minister denied recent contact with the US special envoy, saying such reports appeared to be only intended to mislead oil traders. 3. Foreign media: The Saudi crown prince suggested Trump continue striking Iran. 4. US Treasury Secretary: There was no intervention in the oil futures market, and oil prices may be "well below" $80 within months. 5. Iranian Foreign Ministry: Ships from parties not involved in the war have already passed through the Strait of Hormuz. 6. Trading in key London Metal Exchange contracts was once suspended for several hours. 7. Li Chenggang: The Chinese and US teams reached preliminary consensus on certain issues. 8. China and the US agreed to study the establishment of a cooperation mechanism to promote bilateral trade and investment. 9. National Bureau of Statistics (NBS): From January to February, the national economy got off to a strong start and began well Spot fundamentals: Yesterday morning, SHFE lead fell sharply, once dropping below 16,200 yuan/mt in early trading, before recovering part of the losses. Suppliers shipped in line with the market, while some suppliers were reluctant to sell at low prices. Discounts narrowed significantly from last Friday, especially for primary lead smelter cargoes self-picked up from production site, with quotations in major producing areas quoted at premiums of 0-50 yuan/mt against the SMM #1 lead average price, ex-works. In addition, as losses widened at secondary lead smelters, some enterprises suspended shipments or offered quotes at high premiums. Secondary refined lead was quoted at premiums of 0-75 yuan/mt against the SMM #1 lead average price, ex-works. Downstream enterprises actively inquired and purchased, with more purchases in major producing areas. However, as market discounts narrowed or turned into premiums, procurement decreased accordingly, and spot market trading was relatively active. Inventory: As of March 16, LME lead inventory increased by 75 mt, or 0.03%, to 284,575 mt; SMM social inventory of lead ingot across five regions increased slightly again. Lead Price Forecast for Today: After plunging sharply yesterday, SHFE lead recovered some of its losses, while discounts for primary lead spot cargo against last Friday narrowed. As losses widened, secondary lead enterprises quoted at premiums, with some choosing not to make shipments; secondary lead prices inverted against primary lead prices, prompting downstream buyers to favor purchases of primary lead. Overall, support from the spot market and cautious downstream sentiment are in a tug-of-war, making it difficult for lead prices to stage a strong reversal for now, with weak consolidation and sideways movement likely to dominate.

SMM News, March 17: Overnight, LME lead opened at $1,905/mt. During the Asian session, LME lead fluctuated around the daily average line. Entering the European session, LME lead edged down to $1,883/mt, then fluctuated upward. Around midnight, after moving sideways, the futures were dominated by bulls, with the center gradually lifting to a high of $1,926/mt, and finally closing at $1,925/mt, up $22/mt, or 1.16%. Overnight, the most-traded SHFE lead contract opened higher with a gap at 16,450 yuan/mt. In early trading, SHFE lead prices plunged rapidly, hitting a low of 16,320 yuan/mt before a slight correction. Thereafter, bulls and bears competed, and SHFE lead posted wide swings within the 16,355-16,405 yuan/mt range. Toward the end of the night session, SHFE lead fluctuated upward, but as bears gained strength, it shifted to a fluctuate downward trend, closing at 16,405 yuan/mt, near the session low. It formed a long upper shadow bearish candle, up 90 yuan/mt, or 0.55%. After SHFE lead fell sharply yesterday, some of the losses were recouped, and discounts for primary lead spot narrowed from last Friday. As losses widened, secondary lead enterprises quoted premiums, with some choosing not to ship. As secondary lead prices inverted against primary lead prices, downstream buyers favored purchasing primary lead. Overall, support on the spot side and cautious downstream sentiment remained in competition, making it difficult for lead prices to stage a strong reversal for now, with weak consolidation and rangebound sideways movement likely to dominate.

SMM, March 13: During the day, the most-traded SHFE lead 2604 contract opened at around 16,550 yuan/mt. In early trading, lead prices fluctuated downward, hitting a low of 16,195 yuan/mt, and then rebounded slightly on buying support, though the rebound was limited. SHFE lead prices saw wide swings within the 16,280-16,370 yuan/mt range and finally closed at 16,315 yuan/mt. A small bearish candlestick was recorded, down 240 yuan/mt, or 1.45%. Recently, factors such as a strong US dollar driven by geopolitical tensions and stagflation concerns have weighed on lead prices. Meanwhile, losses at secondary lead smelters widened, with some enterprises suspending shipments or raising premiums on quotes; premiums for cargoes self-picked up from production sites at primary lead smelters remained firm, and proactive supply-side tightening underpinned spot prices. At present, lead prices are dominated by bears and are expected to remain in the doldrums. Subsequent lead price trends should focus on changes in downstream buying sentiment. Data source statement: Except for public information, all other data is processed and derived by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.

Futures: Last Friday, LME lead opened at $1,938/mt. During the Asian session, LME lead prices moved steadily around the daily average line, briefly touching a high of $1,638.5/mt. Entering the European session, bulls and bears were evenly matched, and LME lead prices continued to fluctuate rangebound around the daily average line. Thereafter, bears took the lead, and LME lead fluctuated downward. Around midnight, LME lead prices plunged to a low of $1,890/mt, and finally closed at $1,903/mt, down $32.5/mt, or 1.68%. Trading volume fell to 7,363 lots, while open interest increased by 2,494 lots to 176,000 lots. Last Friday night, the most-traded SHFE lead contract opened at 16,550 yuan/mt. It edged up in early trading, touched a high of 16,565 yuan/mt, and then slipped slightly. Thereafter, amid a tug-of-war between bulls and bears, SHFE lead prices fluctuated rangebound within the 16,385-16,465 yuan/mt range, and closed at 16,395 yuan/mt near the session low. It posted a long bearish candlestick, down 160 yuan/mt, or 0.97%. Trading volume fell to 28,599 lots, while open interest increased by 2,715 lots to 66,396 lots. On the macro front: 1. US GDP for Q4 last year was revised down to only 0.7%, while core PCE inflation rose 0.4% MoM and 3.1% YoY. 2. Sources said neither the US nor Iran intended to agree to a ceasefire, and the conflict in the Middle East may become prolonged. Israeli Prime Minister Netanyahu released a video to prove he was still "alive" and said operations against Iran would continue. The Israeli military said its military operations against Iran would last at least another three weeks. Iran's foreign minister said Iran had never requested a ceasefire or negotiations. A senior Iranian commander said there were two conditions for ending the war: Iran must recover all losses and the US must leave the Persian Gulf. 3. International Energy Agency: Record strategic crude oil reserves will be released immediately to the Asian market, while Europe and the US will need to wait until month-end. 4. Japanese Finance Minister Katayama Satsuki: Preparations have been made to take all necessary exchange-rate measures. 5. State Council executive meeting: It discussed and approved the Work Division Plan for the State Council's Key Tasks in 2026 and studied the establishment of a negative list management mechanism for local fiscal subsidies. 6. The central bank: Aggregate social financing added up to 9.6 trillion yuan in the first two months, 31.62 billion yuan more than the same period last year; M2 balance at the end of February rose 9% YoY. 7. The National Financial Regulatory Administration, together with the People's Bank of China, formulated the Provisions on Disclosure of Comprehensive Financing Costs for Personal Loan Business. 8. China Securities Regulatory Commission: It will closely track changes in international financial markets and the internal and external environment, and strengthen coordinated monitoring of at home and abroad and futures and spot markets. 9. China-US economic and trade consultations were held in France from March 14 to March 17. Spot fundamentals: SHFE lead remained in the doldrums. Suppliers quoted in line with market conditions. In Jiangsu, Zhejiang, Shanghai, suppliers mostly waited for delivery, with few quotations. Meanwhile, quotations for primary lead cargoes self-picked up from production site diverged. Suppliers in the north actively made shipments at discounts, while in south China, due to limited circulating cargoes, some suppliers held prices firm and shipped at premiums. Mainstream producing areas were quoted at discounts of 25 yuan/mt to premiums of 50 yuan/mt ex-works against the SMM #1 lead average price. In addition, secondary lead smelters were mostly cutting or suspending production due to losses, leaving fewer circulating cargoes in the market. Secondary refined lead was quoted at premiums of 0-25 yuan/mt ex-works against the SMM #1 lead average price. Downstream enterprises bought the dip on demand, and due to the price difference between primary lead and secondary lead, rigid demand from downstream enterprises was more inclined toward primary lead. Inventory: As of March 13, LME lead registered warrants fell 0.18% to 279,125 mt. As of March 12, total SMM social inventory of lead ingot across five regions continued to increase. Today's Lead Price Forecast: Current lead prices were still generally moving in a weak rangebound pattern, lacking a clear one-way trend. The primary lead spot market showed a clear north-south divergence, with northern suppliers shipping at discounts and some southern cargoes staying tight, supporting firm offers. Secondary lead smelters cut or suspended production due to losses, and tighter circulating cargoes provided some price support, but downstream procurement remained cautious and mainly driven by rigid demand, with weak purchase willingness. As the price spread between primary lead and secondary lead narrowed, some demand shifted to primary lead, while transactions in secondary lead remained sluggish. Overall, lead prices are unlikely to see a notable rebound in the short term and will likely maintain rangebound consolidation. Further attention should be paid to inventory changes and smelter production conditions.

SMM News, March 16: Last Friday, LME lead opened at $1,938/mt. During the Asian session, LME lead prices moved steadily around the daily average line, briefly touching a high of $1,638.5/mt. Entering the European session, bulls and bears were evenly matched, and LME lead continued to fluctuate rangebound around the daily average line. Later, bears took the lead, sending LME lead fluctuating downward. Around midnight, LME lead prices plunged to a low of $1,890/mt before finally closing at $1,903/mt, down $32.5/mt, or 1.68%. Trading volume fell to 7,363 lots, while open interest increased by 2,494 lots to 176,000 lots. Last Friday night, the most-traded SHFE lead contract opened at 16,550 yuan/mt. It edged up at the beginning of the session, then retreated slightly after touching a high of 16,565 yuan/mt. Thereafter, amid a tug-of-war between bulls and bears, SHFE lead fluctuated rangebound in the 16,385-16,465 yuan/mt range, and closed near the session low at 16,395 yuan/mt. It posted a long lower-shadow bearish candlestick, down 160 yuan/mt, or 0.97%. Trading volume fell to 28,599 lots, while open interest increased by 2,715 lots to 66,396 lots. At present, lead prices remained mainly in the doldrums overall, lacking a clear unilateral trend. In the primary lead spot market, divergence between north and south China was evident: cargoes in north China were shipped at discounts, while some supply in south China was tight, prompting sellers to hold prices firm. Secondary lead smelters cut or halted production due to losses, and the tightening of circulating supply provided some support to prices. However, downstream procurement remained cautious and was mainly driven by rigid demand, with weak purchase willingness. As the price spread between primary lead and secondary lead narrowed, part of demand shifted to primary lead, and secondary lead transactions were sluggish. Overall, lead prices were unlikely to see a marked rebound in the short term and would likely remain rangebound, with follow-up attention needed on inventory changes and smelter production conditions.

Only 15 days remain until the opening of the 14th Energy Storage International Summit and Exhibition, ESIE 2026! New business models, new products, and new technologies in the global energy storage industry will be showcased in a concentrated manner on the ESIE 2026 platform! The countdown has begun, and the world’s largest, highest-level, and most influential gathering of ideas and technologies in the global energy storage industry is about to open! ●Exhibition Dates: April 1–April 3 ●Summit Dates: March 31–April 3 ●Venue: Beijing · Capital International Exhibition & Convention Center Scan the QR code above for free exhibition admission Six themed exhibition halls, over 160,000 m² of exhibition space, 800+ exhibitors/sponsors—the full detailed floor plan for all halls of ESIE 2026 is officially unveiled! Save and bookmark it to locate the brands and exhibition areas you are interested in! Detailed forum schedules have been released: Cutting-Edge Technology Led by 9 academicians! Detailed agenda for the 9th Energy Storage Frontier Technology Conference released Mechanism Innovation Detailed agenda released | ESIE 2026 Themed Forum: New-Type Energy Storage and the Electricity Market Detailed agenda released | Regional Characteristic Market Forum, Generation-Grid-Load-Storage and Green Electricity Direct-Connection Integration Forum Market-Driven Growth Detailed agenda released | ESIE 2026 Themed Forum: Development and Operation of Standalone ESS Projects Detailed agenda released | ESIE 2026 Themed Forum: Coordinated Development of Energy Storage + AIDC Detailed agenda released | ESIE 2026 Themed Forum: Energy Storage + New Business Models and New Development Global Perspective Detailed agenda released | ESIE 2026 Themed Forum: Development and Trends in the Global Energy Storage Market A Barometer of the Development of China’s Energy Storage Industry The 14th Energy Storage International Summit and Exhibition ESIE 2026 Exhibition Dates: April 1, 2026–April 3, 2026 Summit Dates: March 31, 2026–April 3, 2026 Venue: Beijing · Capital International Exhibition & Convention Center

Dalian iron ore futures were generally stronger today. The most-traded contract, I2605, eventually closed at 816.5 yuan/mt, up 1.81% from the previous trading session. Meanwhile, the spot price rose by about 5 yuan from the previous trading day. Traders were moderately active in offering quotes, while steel mills made relatively few inquiries. Overall spot market transactions were limited. The latest SMM survey showed that the impact of blast furnace maintenance on hot metal production was 1.751 million mt, down 250,000 mt WoW. This impact is expected to further decline by 229,800 mt next week to 1.522 million mt. As blast furnace maintenance intensity gradually eases, iron ore demand is expected to show signs of rebounding in the short term. Looking ahead, although current port iron ore inventory has reached 155 million mt, the overhang is mainly concentrated in certain varieties. Overall, market demand for some high-demand varieties has seen a structural shift. In particular, varieties represented by IOCJ fines and PB lumps continued to destock rapidly, while MAC fines and Indian fines saw an inventory buildup. The structural contraction on the supply side is expected to lend favorable support to iron ore fundamentals in the short term. Therefore, iron ore prices are expected to fluctuate at highs or remain relatively strong this week.

Chinese Vice Premier He Lifeng will lead a delegation to France and hold the sixth round of China-U.S. economic and trade consultations with the U.S. side from March 14 to 17. Regarding the U.S. plan to launch a Section 301 investigation into China and other economies, a spokesperson for the Ministry of Commerce explicitly stated that China reserves the right to take all necessary measures and will resolutely safeguard its legitimate rights and interests.

Solid-state batteries were a hot topic at the 2026 Two Sessions, where delegates noted that the industry is at a critical inflection point, moving from “samples” to “products.”

In mid-March 2026, CAAM and the China Automotive Power Battery Industry Innovation Alliance successively released relevant data on the auto and power battery markets for February 2026. According to CAAM’s analysis, auto production and sales declined YoY under the combined impact of multiple factors, including policy transition adjustments, front-load demand release, the timing shift of the Chinese New Year holiday, insufficient willingness to consume, and a high base in the same period last year. Among them, the passenger vehicle market and NEV market both declined YoY, while the commercial vehicle market continued to improve, and auto exports grew rapidly. .......SMM compiled the relevant data on the auto market and power battery market for February 2026 for readers’ reference. Automobiles CAAM: February Auto Output and Sales Reached 1.672 Million and 1.805 Million Units, Respectively In February, auto output and sales totaled 1.672 million and 1.805 million units, down 31.7% and 23.1% MoM, and down 20.5% and 15.2% YoY, respectively. From January to February, auto output and sales totaled 4.122 million and 4.152 million units, down 9.5% and 8.8% YoY, respectively. CAAM: February NEV Sales Reached 765,000 Units; January-February NEV Output and Sales Reached 1.71 Million Units In February, NEV output and sales totaled 694,000 and 765,000 units, down 21.8% and 14.2% YoY, respectively. NEV sales accounted for 42.4% of total new vehicle sales. From January to February, NEV output and sales totaled 1.735 million and 1.71 million units, down 8.8% and 6.9% YoY, respectively. NEV sales accounted for 41.2% of total new vehicle sales. CAAM: Auto Exports Continued to Grow in February; NEV Exports up 1.1x YoY In February, NEV exports were 282,000 units, down 6.6% MoM, up 1.1x YoY ; traditional fuel vehicle exports were 391,000 units, up 2.8% MoM and up 26.2% YoY . From January to February, NEV exports were 583,000 units, up 1.1x YoY; traditional fuel vehicle exports were 769,000 units, up 22.2% YoY . Regarding the auto market in February, CAAM said that this year’s Chinese New Year fell in mid-to-late February, and the holiday was extended. As a result, there were only 16 effective working days in February, which had a certain impact on enterprise production and operations, and overall market activity declined. Judging from industry performance from January to February, auto production and sales declined YoY under the combined impact of multiple factors, including policy transition adjustments, front-load demand release, the timing shift of the Chinese New Year holiday, insufficient willingness to consume, and a high base in the same period last year. Among them, the passenger vehicle market and NEVs declined YoY, while the commercial vehicle market continued to improve and auto exports grew rapidly. This year’s government work report explicitly proposed to stimulate the endogenous momentum of household consumption and advance consumption-promoting policies in parallel, continue to amplify the effect of the policy package, further rectify “involution-style” competition, and foster a sound market ecosystem. It is believed that, as detailed local subsidy measures are fully implemented after the holiday, spring auto show sales promotions begin, and automakers roll out new models one after another, this will help boost consumer confidence, energize the auto market, and promote the healthy and stable operation of the industry. Subsequently, the CPCA also released data on the passenger vehicle market for February 2026. From February 1 to 28, retail sales in China’s passenger vehicle market reached 1.034 million units, down 25.4% YoY and down 33.1% MoM. Cumulative retail sales since the beginning of the year totaled 2.578 million units, down 18.9% YoY. As market factors have become more complex, the pattern of “low at the beginning and high at the end” in annual sales has become more evident in recent years. Affected by disruptions such as Chinese New Year, February retail sales have seen wild YoY swings over the years, for example: 2019 (-19%), 2020 (-79%), 2021 (373%), 2022 (5%), 2023 (10%), 2024 (-21%), and 2025 (26%). Therefore, the -25.4% in 2026 was at the lower-middle end of the range of sharp fluctuations in February growth rates over the years. NEVs, retail sales in the passenger NEV market were 464,000 units in February, down 32.0% YoY; from January to February, retail sales in the passenger NEV market were 1.06 million units, down 25.7% YoY. Retail sales of conventional fuel passenger vehicles were 570,000 units in February, down 19% YoY. In February, passenger NEV producer exports were 269,000 units, up 124.7% YoY and down 7.0% MoM; from January to February, passenger NEV producer exports were 559,000 units, up 114.7% YoY, while exports of conventional fuel passenger vehicles were 290,000 units in February, up 21% YoY. NEV exports, as the scale advantages of China’s new energy vehicles become more apparent and market expansion demand grows, more and more China-made new energy brand products are going outside China, and their recognition outside China continues to improve. Among them, PHEVs accounted for 38% of NEV exports (38% in the same period last year). Although they have recently been affected by some disruptions from external countries, exports of independently developed PHEVs to developing countries have grown rapidly, with bright prospects. In February, passenger NEV exports were 269,000 units, up 124.7% YoY and down 7.0% MoM. They accounted for 48.5% of passenger vehicle exports, up 14.8 percentage points YoY; BEVs accounted for 58% of NEV exports (59% in the same period last year), and A00- and A0-class EVs, the core focus, accounted for 55% of BEV exports (56% in the same period last year). The CPCA stated that after the NEV purchase tax exemption policy, which had been implemented since September 2014, was formally phased out at the end of December 2025, the NEV market in 2026 entered a recovery period amid adjustments to tax subsidies. Some consumers brought forward purchases to 2025 to benefit from the policy, resulting in a certain pull-forward effect in January-February this year. This was an expected short-term fluctuation and does not represent the market’s long-term trend. However, with Chinese New Year falling later this year, making it a major consumption year, growth in the auto market diverged, and NEVs did not perform strongly, indicating that more policy support is still needed. Key features of the passenger vehicle market in February 2026: 1. In February, passenger vehicle producers’ daily average exports hit a record high for the month, fully demonstrating the steadily improving competitiveness of China’s automotive industry in the global market and continued robust demand outside China; 2. The retail pullback after the expiration of the vehicle purchase tax exemption was evident, but structural changes were also clear, namely a higher share of high-end NEVs and a lower share of entry-level consumption, which is conducive to the industry’s transition toward high-quality development; 3. New vehicle launches were steady in 2026, and together with the advance of anti-involution efforts curbing disorderly price cuts, NEV sales promotions stayed at 10.4% in February, remaining around 10% for six consecutive months. No vicious volume discount competition emerged, helping maintain market order; 4. The historical pattern of internal combustion engine vehicles outperforming NEVs before Chinese New Year continued again. In February, retail sales in China of internal combustion engine vehicles fell 19% YoY, while pure electric vehicle retail sales fell 35% YoY, range-extended vehicles fell 16% YoY, and PHEVs fell 31% YoY. As time goes by, consumers are expected to gradually adapt to the normalization of NEV taxation, and the NEV market is expected to return to a track of positive growth; 5. This February was still a pre-Chinese New Year consumption phase dominated by internal combustion engine vehicles. NEV penetration rate in retail sales in China was 44.9%, and export penetration rate was 48.5%, which was a relatively good performance; 6. In February 2026, exports of self-owned-brand internal combustion engine passenger vehicles reached 247,000, up 21% YoY, while exports of self-owned-brand NEVs reached 231,000, up 110% YoY. NEVs accounted for 48.4% of self-owned-brand exports. In particular, the high growth of NEV exports in Europe, Southeast Asia, and other regions marked the expanding influence of China’s NEV brands in the international market, laying a solid foundation for future export growth. Power Battery In February, China’s cumulative sales of power and ESS batteries reached 113.2 Gwh, up 25.7% YoY In February, China’s sales of power and ESS batteries reached 113.2 Gwh, down 23.9% MoM, up 25.7% YoY . Of this, power battery sales were 74.5 Gwh, accounting for 65.9% of total sales, down 27.4% MoM and up 11.4% YoY; ESS battery sales were 38.6 Gwh, accounting for 34.1% of total sales, down 16.2% MoM and up 67.3% YoY. From January to February, China’s cumulative sales of power and ESS batteries were 262 Gwh, up 53.8% YoY . Of this, cumulative power battery sales were 177.2 Gwh, accounting for 67.6% of total sales and up 36.5% YoY; cumulative ESS battery sales were 84.8 Gwh, accounting for 32.4% of total sales and up 108.9% YoY. From January to February, cumulative power battery installations were 68.3 Gwh, with LFP installations accounting for 77.9% In February, China’s power battery installations were 26.3 Gwh, down 37.4% MoM and down 24.6% YoY. Of this, ternary battery installations were 5.7 Gwh, accounting for 21.7% of total installations, down 39.1% MoM and down 11.4% YoY; LFP battery installations were 20.6 Gwh, accounting for 78.3% of total installations, down 36.9% MoM and down 27.5% YoY. From January to February, cumulative power battery installations in China were 68.3 Gwh, down 7.2% YoY. Of this, cumulative ternary battery installations were 15.1 Gwh, accounting for 22.1% of total installations and up 0.6% YoY; cumulative LFP battery installations were 53.3 Gwh, accounting for 77.9% of total installations and down 9.2% YoY. More Than 60% of A/H-Share Automakers Achieved YoY Growth, March Auto Market Production and Sales Will See Rapid MoM Growth Earlier, CLS compiled the January-February sales performance of 14 A/H-share listed automakers, of which 9 achieved YoY growth, accounting for more than 60%, and 3 automakers recorded February sales outside China exceeding those in the Chinese market. Among emerging EV makers, Leap Motor still firmly held the top spot in deliveries, with 28,067 units delivered in February, up 10.99% YoY; cumulative deliveries in 2026 reached 60,126 units, up 19.16% YoY. While releasing its February delivery figures, Leap Motor said its March car purchase incentives had gone live, with discounts of up to 46,000 yuan for in-stock vehicles. Li Auto delivered 26,421 units in February, up 0.6% YoY. Cumulative deliveries in 2026 reached 54,089 units, down 3.74% YoY. As of February 28, 2026, Li Auto’s historical cumulative deliveries totaled 1.594 million units. Li Auto said that as of February 28, 2026, it had 539 retail centers nationwide, covering 160 cities; 548 after-sales repair centers and authorized service centers, covering 223 cities. Li Auto had put into use 4,054 Li Auto supercharging stations nationwide, with 22,447 charging piles. NIO delivered 20,797 new vehicles in February, up 57.65% YoY. Cumulative deliveries in the first two months of 2026 reached 47,979 units, up 77.34% YoY. To date, NIO has delivered a total of 1,045,571 new vehicles. At 22:33:18 on February 6, NIO completed its 100 millionth battery swap; during the 2026 Chinese New Year holiday, NIO provided a cumulative 2,073,500 battery swapping services, with daily average services up 29.4% YoY versus the Chinese New Year holiday last year. From February 15 to February 23, NIO Energy's cumulative highway charging and battery swapping volume exceeded 25.28 million kWh, accounting for 15% of the national highway charging and battery swapping total. Starting from February 18 (the second day of the Chinese New Year), NIO battery swapping set new single-day service records for five consecutive days. XPeng Motors delivered a total of 15,256 new vehicles in February, bringing cumulative deliveries in the first two months of 2026 to 35,267 units, down 42% YoY. In February, the all-new XPeng G6 launched in the UK, with the entire lineup equipped as standard with an 800V high-voltage platform and a new-generation LFP battery, while introducing an all-wheel-drive performance black edition for the first time. The XPeng G6 has now been exported to more than 40 countries and regions worldwide, covering Asia-Pacific, Europe, the Middle East and North Africa, and Latin America, and continues to win favour among an increasing number of overseas consumers. As for Xiaomi Auto, its deliveries exceeded 20,000 units in February, while January deliveries exceeded 39,000 units, bringing cumulative deliveries in the first two months of 2026 to 59,000 units. Notably, the Xiaomi YU7 continued to rank first in sales in February and has now held the top spot for six consecutive months. In February 2026, Xiaomi YU7 sales reached 20,196 units, ranking among the top three passenger vehicle models nationwide for the month. As for BYD, China's "EV king," February sales reached 190,190 units, retaining its position as China's NEV sales champion. In January-February 2026, BYD Group's cumulative sales reached 400,241 units, while cumulative overseas sales of passenger vehicles and pickups totaled 200,160 units, and cumulative new energy vehicle sales exceeded 15.5 million units. On March 5, BYD unveiled the second-generation blade battery. Wang Chuanfu, Chairman of BYD Group, said that the second-generation blade battery can charge from 10% to 70% in 5 minutes, and from 10% to 97% in just 9 minutes. The second-generation blade battery offers 5% higher battery energy density than the first-generation blade battery. Car models equipped with the second-generation blade battery include the Yangwang U7, Denza N9, Fangchengbao Tai 3, Seal 07, Datang, Sea Lion 06, Song Ultra, Fangchengbao Tai 7, Denza Z9GT, and Yangwang U8L, among which the Denza Z9GT has a driving range of 1,036 km. Regarding auto industry sales in February 2026, Cailian Press quoted an executive at a new carmaker as saying, "Affected by the longest-ever nine-day Chinese New Year holiday in February, the auto industry's effective production and sales period was significantly shortened, making it a typical off-season for auto consumption. Combined with the phased reduction in the vehicle purchase tax incentive, the auto industry as a whole remained subdued and full of challenges.” Looking ahead to the passenger vehicle market in March, the CPCA said that March this year had 22 working days, one more than the 21 working days in March 2025. As industries across the board rapidly returned to normal operations after the Chinese New Year holiday, production and sales growth in March is expected to rise sharply MoM. The post-Chinese New Year period is an important window for new product launches, and many producers rolled out a large number of new vehicles. Driven by national pro-consumption policies, many provinces and cities introduced corresponding measures to stimulate consumption, while the full resumption of offline activities such as auto shows will also accelerate the return of foot traffic. As prices of lithium carbonate, copper, and other materials have remained high recently, coupled with the continued anti-involution trend, producers are expected to launch relatively few new energy car models offering better-than-expected value for money, leaving limited potential for an explosive rebound in auto consumption. Although the recent Middle East crisis caused some transportation disruptions, China’s complete vehicle enterprises shifted from “chartering vessels and waiting for shipping space” to “building ships and controlling transport,” with rapid expansion of their own fleets, greater autonomy and control over shipping capacity, and significant optimization in cost and efficiency. Our sales support capabilities are stronger than those of other international automakers, and if the crisis does not last long, export transportation will not be significantly affected. As the national trade-in policy is fully implemented, the consumer potential for replacement and upgrade purchases will be gradually released, helping the auto market strengthen steadily in March. In 2026, policy subsidies and structural optimization in the auto industry will become key factors in leveraging overall market prosperity and accelerating the premiumization of new energy vehicles. Although the 2026 consumer goods trade-in subsidy fund of 250 billion yuan was down 50 billion yuan from 2025, the 100 billion yuan in special fiscal and financial coordinated funding to boost domestic demand can reduce financing costs for residents’ car purchases and automakers through loan interest subsidies and financing guarantees, effectively stimulating endogenous consumption momentum and expanding new room for domestic demand. Huachuang Securities pointed out that since March, the passenger vehicle retail market has begun to improve, with foot traffic and transactions gradually recovering, mainly due to the digestion of deferred wait-and-see demand from last year and the launch of new models. Attention should be paid to market acceptance of new vehicles after price increases and to dynamic adjustments by automakers. Although the subsidy amount per vehicle declined this year, coverage may expand. Combined with the low base in H2 last year, industry retail sales growth in H2 is expected to turn positive, with full-year retail growth expected at 1%, including +5% for EVs. Export data for January-February exceeded expectations, and full-year exports are expected to surpass 7.1 million units, boosting wholesale growth by about 3%, including +8% for EVs. In February, due to weaker demand during the Chinese New Year, the new energy penetration rate remained firm at 48%. Current total channel inventory is about 3.4 million units, an increase of about 600,000 units compared to the same period last year. Rising Prices of Memory Chips and Precious Metals, Some Automakers Warn of Cost Pressure It is worth noting that as memory chip and precious metal prices have fluctuated upward recently, some automakers in the market have begun trying to respond to supply chain cost pressure through “price increases.”Monitoring data from TrendForce showed that since H2 2025, prices of DDR4 memory used in automotive-grade DRAM have risen by more than 150% cumulatively, while DDR5 memory prices have surged by 300%. Data provided by UBS showed that over the past three months, automotive-grade DRAM prices as a whole increased by 180%. According to incomplete statistics, since the start of 2026, multiple automakers, including NIO, Li Auto, VOYAH, Xiaomi, and Zeekr, have issued warnings or been reported to be facing cost challenges brought by chip price increases. In a livestream, Deepal Chairman Deng Chenghao said that current production costs have risen by several thousand yuan compared with earlier levels, with the pressure mainly coming from wild swings in power battery and in-vehicle memory chip prices; Li Auto Vice President of Supply Chain Meng Qingpeng even warned that the supply fulfillment rate for automotive memory chips in 2026 may be less than 50%; Xiaomi Chairman Lei Jun mentioned in a livestream in January that the new Xiaomi SU7 is facing memory cost pressure that is jumping quarter by quarter, with memory cost per vehicle expected to increase by several thousand yuan. However, according to the latest news from NIO on March 11, NIO founder and chairman Li Bin said that rising prices of memory and other raw materials have impacted the cost of high-end new energy car models by 3,000 to 5,000 yuan respectively, with the total impact nearing 10,000 yuan. At present, NIO’s existing system can support the pressure brought by rising costs, and the company currently has no plan to adjust prices. At the Q4 and full-year 2025 earnings call, Li Auto President Ma Donghui said that in response to the impact brought by the current increase in parts prices, Li Auto will strengthen coordination with supply partners and sign long-term LTA agreements with relevant suppliers to lock in prices or allocations in advance. If there is a price adjustment mechanism, it will be strictly implemented in accordance with the contract; where there is no price adjustment mechanism, the company will also share costs with suppliers. It will absorb as much of the pressure from external price increases internally as possible, including through its self-developed range extender and self-developed chips. “Li Auto will comprehensively consider parts costs and user value in determining the pricing of new car models, and is confident that through a series of measures it can keep the impact of raw materials within a reasonable range,” Ma Donghui said. UBS warned that chip shortages may begin disrupting global auto production as early as Q2 this year, with EV manufacturers that are highly dependent on advanced chips expected to be affected the most.