Hua Xia Shi Bao·2025-05-14 09:24Core Insights - The latest data from the Ministry of Commerce indicates that as of May 11, 2025, the number of applications for the vehicle trade-in subsidy reached 3.225 million, with 1.035 million for scrapping and 2.19 million for replacement [2] - The domestic passenger car market maintained a growth rate of over 10% in April, driven by various promotional policies and incentives from local governments, automakers, and dealers [2] - In April, retail sales of new energy passenger vehicles reached 905,000 units, a year-on-year increase of 33.9%, accounting for 51.5% of the passenger car market, up 7 percentage points from the same period last year [2] Market Dynamics - The competition between traditional and new energy vehicles is intensifying, with A00 and A0 class electric vehicles showing higher cost-effectiveness under subsidies, while B-class vehicles saw only a 20% growth and a 7 percentage point decline in market share [3] - Major automakers like BYD and Geely are launching low-priced models to capture the sinking market, while mid-to-high-end brands face intense competition from models like Model Y and Xiaomi SU7 [3] - Analysts suggest that balancing scale expansion with profitability will be crucial for automakers in the second half of the year [3] Price War Trends - The price war in the automotive market is showing signs of cooling, with only 14 models seeing price reductions in April, a significant drop from 41 in April last year [4] - The promotional discount for traditional fuel vehicles was 22.2%, a slight increase from the previous month, remaining stable for 10 consecutive months [4] - The shift from "price for volume" to "value upgrade" is noted as a long-term competitive strategy among automakers, supported by government policies and market recovery [5] Sales and Inventory - In April, wholesale sales of domestic passenger vehicles increased by 10.7% year-on-year to 2.19 million units, marking the first time in history that monthly sales exceeded 2 million units [5] - The cumulative wholesale volume for the first four months reached 8.468 million units, a year-on-year increase of 11.1% [5] - Automakers are now focusing on "implicit discounts" and enhancing customer experience through improved features and services [5] Brand Performance - The market share gap between brands is widening, with mainstream joint venture brands experiencing a 3% decline in retail share, while domestic brands saw an 8% increase, reaching 65.5% [6] - In the new energy vehicle segment, domestic brands dominate with a penetration rate of 72.8%, compared to only 6.8% for mainstream joint venture brands [6] - The proportion of replacement buyers in the trade-in market has risen to 70%, while first-time buyers have decreased to 31%, indicating a shift in consumer behavior [6] Future Outlook - The automotive market is expected to see a significant increase in sales in May due to policy incentives, new car launches, and promotional events [7] - The competition among automakers is anticipated to intensify in the second half of the year, with a focus on diverse strategies to enhance product competitiveness [7] - There is a possibility of a renewed price war in the second half of the year, driven by favorable market conditions and decreasing lithium carbonate costs [7]