Core Insights - The B-class fuel SUV market experienced a year-on-year decline of 27% in November, with a month-on-month increase of 6% compared to October, indicating significant growth pressure [1][13] - The luxury B-class SUV segment saw a year-on-year decline of 22.6% in November, but a month-on-month increase of 14.6%, showing better monthly performance than the mainstream B-class fuel SUV market [1][13] - The traditional winter market is underperforming, with a severe drop in sales of homogeneous products, while differentiated products are performing well, reflecting a clear trend of high-end consumer upgrades [1] Market Trends - The retail growth rate of the domestic passenger car market fluctuated significantly in 2025, starting with a 1.2% increase in January-February, peaking at 15% from March to June, and then declining to -8% in November [1][4] - The market is currently in a transitional phase due to the adjustment of subsidy policies, which has led to a slowdown in sales [7][20] - The overall retail sales in the fourth quarter are expected to create a favorable growth space for the "15th Five-Year Plan" period, following strong performance during the "14th Five-Year Plan" [19][20] Sales Performance - In November, the retail sales of fuel passenger vehicles dropped by 22% year-on-year and 7% month-on-month, indicating a challenging market environment [10][11] - The luxury B-class SUV market saw significant declines, with major brands like Audi, Mercedes-Benz, and BMW experiencing year-on-year drops exceeding 20% [14][15] - The only model showing positive growth in this segment was the Cadillac XT5, which achieved a 7% year-on-year increase in sales, highlighting potential opportunities in a contracting market [14][15] Consumer Behavior - Consumers are increasingly rational, focusing on the practical value of products rather than just luxury branding, which is reshaping the luxury vehicle market [15] - Safety has become a critical concern in the automotive industry, with brands like Cadillac emphasizing safety features to enhance consumer value perception [15] Future Outlook - The automotive market is expected to continue facing challenges in 2026, with intensified competition and the need for brands to maintain distinctiveness and differentiation [19][20] - The continuation and optimization of the "old-for-new" subsidy policy is anticipated to significantly boost automotive consumption potential in the coming years [20]