Core Viewpoint - The article highlights the robust performance of the pickup truck market in China, with significant year-on-year growth in both sales and production, driven by strong demand in specific regions and the increasing export of Chinese pickup trucks [2][3]. Pickup Truck Sales - In December 2025, the pickup truck market sold 52,000 units, marking an 8.8% year-on-year increase and reaching a five-year high. For the entire year, sales totaled 589,000 units, up 11.8% year-on-year [2]. - December 2025 production reached 48,000 units, a 5.2% increase year-on-year, with total production for the year at 575,000 units, reflecting a 14% year-on-year growth [2]. - Great Wall Motors continues to lead the market, with strong performances from other manufacturers like Changan, SAIC Maxus, and JAC Motors. The market remains characterized by a "one strong, many strong" structure [2]. Regional Demand - The main demand for pickup trucks is concentrated in the Southwest and Northwest regions, which accounted for 46% of total demand in December 2025. In contrast, the performance in the Beijing-Tianjin-Hebei region was weaker [2]. Export Performance - In December 2025, China exported 28,000 pickup trucks, a 12% year-on-year increase, although it saw a 7% month-on-month decline. Total exports for the year reached 300,000 units, up 21% year-on-year [3]. - By 2024, exports are expected to account for 45% of total pickup truck sales, increasing to 50% in 2025, indicating a strong acceleration in the export of Chinese-made pickups [3]. New Energy Pickup Trucks - In December 2025, sales of new energy pickup trucks were 6,000 units, a 3% year-on-year decrease and a 30% month-on-month decline. However, total sales for the year reached 73,000 units, reflecting a remarkable 243% year-on-year growth [3]. - The article notes that the demand for electric light trucks is surging, positioning electrification as a key factor for commercial vehicles to gain road rights. The growth potential for the pickup market is expected to improve with the development of electrification and passengerization [3].

Market Overview - From January 1 to 11, the national retail sales of passenger cars reached 328,000 units, a year-on-year decrease of 32% and a month-on-month decrease of 42% [2][5] - The wholesale volume for the same period was 381,000 units, down 40% year-on-year and 30% month-on-month [2][8] - In the new energy vehicle sector, retail sales were 117,000 units, a 38% year-on-year decline, while wholesale was 167,000 units, down 30% year-on-year [2][5] Production Trends - In the first week of January, production of pure fuel light vehicles was 91,000 units, a 63% year-on-year decrease, while production of hybrid and plug-in hybrid vehicles was 139,000 units, down 17% year-on-year [3][6] Policy Impact - The National Development and Reform Commission announced a policy to promote large-scale equipment updates and a trade-in program, which is expected to boost domestic car consumption [5] - The policy will maintain strong incentives for commercial vehicle updates, while subsidies for passenger vehicle trade-ins are projected to decrease by 20% on average by 2025 [5] Market Dynamics - The weak retail performance in January is attributed to the recent expiration of the vehicle purchase tax exemption policy, but market conditions are expected to improve as local subsidy details are fully implemented [6][9] - The January sales are anticipated to show slight growth due to pre-orders and the impact of the upcoming Spring Festival [9] International Trade Developments - The Ministry of Commerce reported progress in negotiations regarding the EU-China electric vehicle case, which aims to provide price commitments to Chinese exporters, thus avoiding high tariffs [10] - This agreement is seen as a significant breakthrough, allowing Chinese electric vehicles to maintain access to the EU market and stabilizing industry expectations [10] Pricing Trends - The average retail price of passenger vehicles has slightly decreased, influenced by structural changes in the market, with the average price expected to drop to 170,000 yuan in 2025 [11] - The average price of new energy vehicles is also declining, from 184,000 yuan in 2023 to 161,000 yuan in 2025, reflecting structural changes in consumer preferences [12] Export Tax Adjustments - The recent announcement to reduce export tax rebates for lithium batteries is expected to have minimal impact on supply and demand, as the first quarter's domestic demand is only 18% of the annual total [13] - This adjustment aims to align export prices with market realities and address international trade concerns [13]

Domestic News - The Ministry of Industry and Information Technology (MIIT) aims to accelerate breakthroughs in all-solid-state batteries and advanced autonomous driving technologies by 2026, emphasizing the importance of high-quality development in the smart connected vehicle industry [3][4] - Shenzhen has successfully implemented the first-ever electric vehicle-to-grid (V2G) electricity settlement, allowing EV owners to earn approximately 15 yuan per discharge, marking a significant step in integrating EVs with the power grid [5] - Jiangsu Province is advancing the "vehicle-road-cloud integration" application trials for smart connected vehicles, focusing on the development of high-level autonomous driving systems and intelligent road infrastructure [6] - Guangzhou plans to add 120,000 new ordinary car license plate quotas for 2026, which will be allocated through a lottery system, enhancing vehicle access in the city [8] - BAIC Group and China Logistics Group have signed a strategic cooperation agreement to enhance logistics and supply chain efficiency, focusing on manufacturing logistics and digital transformation [9] - BAIC Arcfox has partnered with Kunlun Network to provide charging network services, offering discounts and exclusive benefits for users [10] - Changan Mazda's CX-6e model is set to launch in European, Australian, and New Zealand markets, furthering its electrification strategy [12] International News - Indian automotive companies are projected to see a 5% year-on-year sales growth in 2025, driven by tax incentives and increased market demand, with December 2025 wholesale sales surging by 26.8% [12] - Renault's high-end crossover model FILANTE is set to debut in the South Korean market in March 2026, with plans for expansion into South America and the Gulf region by early 2027 [13] - Kia has launched the new entry-level electric SUV EV2 and several high-performance electric models in Europe, expanding its electric vehicle lineup [14] - Sony Honda Mobility has unveiled its second electric vehicle prototype, AFEELA, at CES 2026, with plans for mass production aimed at a 2028 launch in the U.S. market [15] Commercial Vehicles - United Heavy-duty Trucks won two innovation awards at the Fourth China Commercial Vehicle Black Technology Competition, highlighting its advancements in electric and energy-saving technologies [16] - Beijing Heavy-duty Truck has launched its iDream hybrid truck, focusing on long-haul transportation needs [17] - Yutong's C11E electric bus successfully completed a 341 km challenge in harsh winter conditions, demonstrating the capabilities of Chinese electric buses [18] - BYD has maintained its position as the leading exporter of new energy buses for three consecutive years, with 4,234 units exported in 2025, reflecting an 18.2% year-on-year growth [19]

Core Viewpoint - As of December 2025, China's foreign exchange reserves reached $33,579 billion, an increase of $115 billion from November, reflecting a growth rate of 0.34% [4]. Group 1: Foreign Exchange Reserves - China's foreign exchange reserves increased due to the depreciation of the US dollar index and fluctuations in global financial asset prices [4]. - The stable economic conditions in China support the maintenance of foreign exchange reserves [4]. Group 2: Industrial Producer Prices - In December 2025, the industrial producer price index (PPI) decreased by 1.9% year-on-year, with a month-on-month increase of 0.2% [6][8]. - The decline in PPI was influenced by a 2.1% drop in production material prices, with specific sectors like mining and raw materials seeing significant decreases [7]. - For the entire year of 2025, the PPI fell by 2.6%, while the purchase price index decreased by 3.0% [6]. Group 3: Consumer Prices - The consumer price index (CPI) rose by 0.8% year-on-year in December 2025, with urban areas experiencing a 0.9% increase and rural areas a 0.6% increase [11]. - Food prices increased by 1.1%, contributing significantly to the CPI rise, while non-food prices rose by 0.8% [11]. - For the year 2025, the overall CPI remained stable compared to the previous year [12].

Domestic News - The Ministry of Industry and Information Technology issued the "Administrative Penalty Discretionary Power Benchmark Table" for the road motor vehicle production sector, effective from February 1, 2026, detailing specific penalties for six types of violations [3] - The National Development and Reform Commission plans to introduce a comprehensive management approach for the recycling of new energy vehicle batteries, emphasizing the principle of "whoever pollutes, whoever manages" [4] - Progress in the China-Europe electric vehicle negotiations indicates that the EU will release guidelines for Chinese exporters regarding price commitments, ensuring a non-discriminatory evaluation process [5] - Shanghai's new action plan for advanced manufacturing (2026-2028) aims to promote investment in emerging sectors such as low-altitude economy, embodied intelligence, and biomanufacturing [6] - Xiaopeng Motors plans to establish a localized supply chain team in Europe and ASEAN markets to enhance supply chain responsiveness and support local production [7] - Zhaoyi Innovation and Chery Automobile signed a strategic cooperation agreement to focus on collaborative innovation in automotive-grade chips and next-generation electronic architectures [8] - The Leap Motor A10 was showcased at the 2026 Brussels Motor Show, marking a significant step in the company's global strategy [9] - Shanghai is optimizing the auto loan process by relaxing application conditions and adjusting loan issuance ratios, terms, and interest rates [10] International News - California's governor proposed a $200 million state-level electric vehicle tax rebate following the termination of the federal tax credit, although the specific rebate amount per vehicle is yet to be determined [12] - Uber unveiled a customized autonomous taxi, set to launch in San Francisco, based on a fully electric platform and integrated with advanced AI technology [13] - Stellantis announced the cancellation of its plug-in hybrid vehicle sales in the U.S. due to weak market demand, shifting focus to more competitive electrification solutions [14] - Maruti Suzuki plans to increase its production capacity by 1 million vehicles in Gujarat, India, with a total budget of approximately $55 million [14] Commercial Vehicles - Beiben Truck passed the supervision audit for its intellectual property management system, demonstrating effective operation and compliance with relevant standards [15] - GAC Aion held a successful mass delivery ceremony for hydrogen fuel cell vehicles, marking a milestone in the commercialization of hydrogen fuel cell technology [17] - The Ministry of Industry and Information Technology announced the 403rd batch of new vehicle approvals, which includes 140 models of new energy heavy trucks, a decrease of approximately 33.01% from the previous batch [18][19] - Youjia Innovation's autonomous vehicle entered the cold chain logistics sector, enhancing smart delivery solutions for fresh produce [21]

Industry Information - The world's first commercially viable solid-state battery has been introduced, featuring an energy density of 400 Wh/kg and the ability to charge in just 5 minutes, with a cycle life of up to 100,000 times [11] - The Ministry of Commerce predicts that over 11.5 million vehicles will be replaced under the vehicle trade-in policy by 2025, with a total sales value exceeding 2.6 trillion yuan [11] - At CES 2026, autonomous driving technology and artificial intelligence are highlighted as key themes, with significant interest in how AI can address safety challenges in autonomous vehicles [12][13] - Contemporary Amperex Technology Co., Ltd. (CATL) has signed a five-year strategic agreement with NIO to deepen collaboration on battery swapping technology [10] - The first half-solid-state lithium battery energy storage project in Inner Mongolia has been connected to the grid, marking a significant advancement in energy storage technology [14] Policy Information - The State Council is accelerating the introduction of comprehensive management measures for the recycling of new energy vehicle batteries [22] - Various local governments are implementing policies to promote the development of electric vehicle charging infrastructure, including the construction of charging stations and the integration of charging facilities in urban planning [20][25][37] - The Guangdong provincial government is optimizing insurance services for new energy vehicles and exploring the development of smart driving liability insurance products [27] - The Ministry of Industry and Information Technology is soliciting opinions on national standards related to automatic parking and safety event data for smart connected vehicles [35] Company Information - NIO has launched 36 new power swap stations, bringing the total to 3,680 stations [8] - GAC Group has signed a contract with Huawei to deepen cooperation in the HarmonyOS ecosystem and AI technology [8] - Leap Motor has achieved a record delivery of over 160,000 units of its B series vehicles [8] - Huawei's partnership with Qian Kun has resulted in over 900,000 units sold in 2025, with a market share of 27.8% in urban navigation assistance [16]

Core Viewpoint - The article discusses the first Horizon Technology Ecosystem Conference held in Shenzhen, focusing on the development of smart vehicles and robots, and the collaboration among various industry players to promote technological advancements and accessibility [3][12]. Group 1: Market Achievements and Product Launches - Horizon has successfully shipped over 10 million units of its Journey series chips within five years, with the latest HSD model achieving over 12,000 activations in just two weeks after its launch [5]. - The company aims to reach a production target of 10 million units for the HSD model in the next 3-5 years [5]. Group 2: Technological Advancements - The fourth-generation compiler technology has significantly improved compilation speed from hours to minutes, with a 20% enhancement in model performance [6]. - The new Riemann architecture is expected to deliver a tenfold increase in computing power and a fivefold improvement in efficiency compared to the previous generation [6]. Group 3: New Service Models and Collaborations - Horizon introduced the HSD Together algorithm service model, which promises to reduce human, computing, and time costs by 90% for smart driving partners [7]. - The company announced that its urban auxiliary driving solution based on the Journey 6M model will soon be mass-produced, making it accessible for vehicles priced around 100,000 yuan [8]. Group 4: Expansion into Robotics - Horizon is expanding its technology from smart driving to general robotics, launching two foundational models: HoloMotion for embodied intelligence and HoloBrain for cognitive capabilities [9]. Group 5: Industry Challenges - The automotive industry is facing a potential storage chip supply crisis due to rising demands for higher performance and larger capacity products, with projections indicating that the supply satisfaction rate may fall below 50% by 2026 [11][12].

Core Viewpoint - The article discusses the implementation of the "Artificial Intelligence + Manufacturing" initiative, which aims to enhance the integration of AI technologies in the manufacturing sector, with specific goals set for 2027 [3][6]. Summary by Sections Overall Requirements - By 2027, China aims to achieve reliable supply of key AI technologies, maintain a leading position in industry scale and empowerment levels, and promote the deep application of 3 to 5 general large models in manufacturing [6]. Innovation Foundation - The initiative emphasizes the need to solidify the foundational technologies that empower AI applications in manufacturing [4]. Intelligent Upgrade - It focuses on expanding and promoting high-value application scenarios for AI in manufacturing [4]. Product Breakthrough - The goal is to construct new intelligent products and business models, fostering innovation in product development [4]. Main Body Cultivation - The initiative aims to cultivate 2 to 3 globally influential leading enterprises and a number of specialized small and medium enterprises, as well as service providers that understand both AI and industry [6]. Ecological Expansion - It highlights the importance of optimizing resource allocation to strengthen the industrial ecosystem [4]. Safety Assurance - The initiative includes measures to enhance safety and security in AI applications [4]. International Cooperation - It aims to create new competitive advantages through international collaboration in AI and manufacturing [4]. Support Measures - The initiative outlines comprehensive policy support to ensure the successful implementation of the outlined goals [4].

Core Viewpoint - The article highlights the performance of the Chinese automotive market in December 2025, noting a decline in retail sales for traditional vehicles while emphasizing growth in the new energy vehicle (NEV) sector and exports. The market is expected to transition into 2026 with a focus on new energy vehicles and a recovery in demand [4]. Sales Performance - In December 2025, the domestic narrow passenger car market retail sales reached 2.261 million units, a year-on-year decrease of 14.0% but a month-on-month increase of 1.6%. Cumulative sales for the year totaled 23.744 million units, reflecting a year-on-year growth of 3.8% [2]. - The wholesale sales ranking for December 2025 shows BYD leading with 414,784 units sold, followed by Geely and Chery with 236,817 and 234,736 units, respectively. Notably, BYD's sales decreased by 12.7% month-on-month and 18.6% year-on-year [5]. - For the entire year of 2025, BYD also topped the wholesale sales with 4.545 million units, marking a 6.9% increase year-on-year, while Geely's sales surged by 39.0% to 3.025 million units [6]. New Energy Vehicle Market - In December 2025, the NEV wholesale sales ranking was led by BYD with 414,784 units, despite a month-on-month decline of 12.7% and a year-on-year drop of 18.6%. Geely followed with 154,264 units, showing a year-on-year increase of 38.7% [9]. - The retail sales for NEVs in December 2025 also saw BYD at the forefront with 339,854 units sold, a month-on-month increase of 10.9% but a year-on-year decrease of 15.7% [13]. - For the full year, BYD maintained its dominance in the NEV sector with 3.485 million units sold, although this represented a year-on-year decline of 6.3% [14]. Market Trends and Future Outlook - The article notes that the end of the year typically sees a surge in vehicle purchases, but the depletion of subsidy funds across provinces has tempered this effect, leading to a more stable demand outlook heading into 2026 [4]. - The performance of various manufacturers indicates a competitive landscape, with traditional automakers facing challenges while NEV manufacturers like BYD and Geely continue to show resilience and growth potential [6][9].

Policy and Regulations - The National Development and Reform Commission and the Ministry of Finance announced the continuation of the "old-for-new" policy for 2026, maintaining support for trucks and buses [8][10] - The 2026 policy optimizes support scope, subsidy standards, and implementation mechanisms, prioritizing subsidies for electric trucks and expanding the scope of old truck scrappage subsidies [9][10] Market Insights - The development of new energy city distribution logistics vehicles faces challenges that require a holistic view of the entire industry chain, connecting battery suppliers, vehicle manufacturers, and logistics operators [15][16] - Three typical collaboration models for new energy city distribution logistics vehicles are emerging: vehicle-led, platform collaboration, and policy-driven [17] Corporate Monitoring - Weichai Group aims for a sales target of 450,000 traditional energy engines and 61,000 new energy power units in 2026, showcasing a comprehensive product layout and strong R&D capabilities [25][26] - Dongfeng Motor Corporation targets sales of 184,000 units in 2026, planning to launch hundreds of new products across various vehicle categories [27][28] - Beiben Trucks aims for a sales target of 12,000 units in 2026, with 3,700 units expected to be sold overseas [29] - SAIC Yuejin targets sales of 56,000 units in 2026, planning to introduce multiple new products [32] - Geely Auto has launched the Radar PHEV four-wheel drive pickup trucks, developed based on the Geely Thor EM-P super electric hybrid system [34][35]