Core Insights - The launch of the 2026 model of the SAIC Volkswagen Pro family marks a significant advancement in the intelligent capabilities of fuel vehicles, challenging the perception that fuel cars cannot be smart [1][5] - The collaboration between SAIC Volkswagen and Zhuoyue Technology over the past seven years has focused on overcoming the fundamental challenges of fuel vehicle intelligence [2] Group 1: Technological Advancements - The Pro family 2026 model features the IQ.Pilot enhanced driving assistance system, which transitions from a "rule-based driving mode" to an "end-to-end mode," allowing for a more human-like decision-making process [2] - The system utilizes an 800 million pixel inertial navigation dual-camera to create a 360° perception system, improving static obstacle monitoring accuracy by 30% and enhancing the smoothness of high-speed lane changes and autonomous ramp access [2] - Unique challenges for fuel vehicle intelligence include heat dissipation issues due to the lack of a water cooling system, compatibility limitations of traditional electronic and electrical (EE) architecture, and hardware stability requirements in vibrating environments [2] Group 2: Market Position and Strategy - In the first half of this year, SAIC Volkswagen's market share for fuel vehicles rose to nearly 9%, maintaining the top position among single brands, with the Pro family contributing 10% to total sales [3] - The company aims to optimize costs by leveraging scale effects and technical route optimization, making advanced driving assistance features available in the 150,000 to 250,000 RMB range for fuel vehicles [3] - The Pro family is positioned to enhance the intelligent performance of fuel vehicles while also rapidly advancing in the new energy sector, with plans to launch 8-9 new models in 2026 that will feature L2++ level driving assistance [4] Group 3: Future Outlook - The 2.0 system currently cannot be upgraded for 1.0 system users due to hardware iterations, but future upgrades are planned [4] - The company emphasizes that it will not abandon the fuel vehicle market, as fuel vehicles still account for over 55% of domestic car sales, aiming for a dual leadership in both fuel and electric vehicles [4] - The launch of the 2026 Pro family signifies a shift in consumer standards for fuel vehicles, where "intelligent performance" will become a core consideration alongside traditional factors like engine and chassis [5]

Core Viewpoint - The traditional fuel vehicle market is undergoing a transformation driven by the rise of smart technology, as major automakers like Geely and Chery launch new fuel models to enhance their competitiveness against electric vehicles [1][2]. Industry Summary - The penetration rate of new energy vehicles is increasing, prompting traditional fuel vehicles to adopt smart features to improve user experience [1]. - The Ministry of Industry and Information Technology's latest product catalog indicates significant advancements in the smart configurations of newly launched fuel models, particularly in smart driving, smart cockpit, and vehicle networking [1]. - Chery has introduced its "New Chinese Fuel" strategy with the launch of the Tiggo 9X and Tiggo 9 models, while Geely has unveiled the new "Chinese Star" series, focusing on AI integration and advanced driving systems [1]. Company Summary - Geely's sales manager emphasized the complexity of fuel vehicle usage scenarios, highlighting the need for smart driving features comparable to those in electric vehicles [2]. - Chery's executive vice president stated that technological upgrades are essential for fuel vehicles to maintain competitiveness, regardless of energy form [2]. - Changan Automobile's new executive vice president noted that 35% of customers will still choose fuel vehicles, leading the company to continue focusing on this market segment [2]. - Market data shows resilience in the fuel vehicle sector, with traditional fuel passenger car sales reaching 902,000 units in August, a year-on-year increase of 13.5% [2]. - Geely's total sales exceeded 1.4 million units in the first half of the year, with the "Chinese Star" series fuel vehicles experiencing a 21% year-on-year growth [2].

Core Insights - The traditional fuel vehicle market in China has shown signs of recovery, with August sales reaching 1.074 million units, a month-on-month increase of 9.5% and a year-on-year increase of 12.9% [1] - The recovery in traditional fuel vehicle sales is attributed to strategic adjustments by manufacturers, including enhancements in product performance and pricing [1][2] - The introduction of new models and aggressive marketing strategies, including cash incentives and financing options, have contributed to the resurgence of fuel vehicles [2][4] Industry Trends - The market for traditional fuel vehicles has experienced a notable year-on-year growth in sales over the past three months, contrasting with the overall trend of decline in recent years [1] - The sales of traditional fuel vehicles in the first eight months of 2025 have only decreased by 0.3% compared to the previous year, indicating a potential stabilization in the market [1] - Major automotive brands are accelerating the upgrade of fuel vehicles, focusing on design, configuration, and smart technology to compete with the rapidly growing electric vehicle market [2][3] Technological Developments - The IQ.Pilot enhanced driving assistance system, developed in collaboration with local tech firms, is being integrated into new fuel vehicle models to improve their competitiveness [3][4] - The A5L model from Audi represents a significant advancement in fuel vehicle technology, featuring a new electronic architecture that enhances its smart capabilities [4][5] - The collaboration between Audi and Huawei in developing driving assistance technology highlights the industry's shift towards integrating advanced technology in fuel vehicles [6] Market Dynamics - Despite the rise of electric vehicles, fuel vehicles remain essential for many consumers, particularly families, and are expected to maintain a significant market share [6] - The competitive landscape for fuel vehicles is evolving, with manufacturers addressing previous shortcomings and enhancing their offerings to attract consumers [6] - The traditional fuel vehicle segment continues to be a crucial revenue source for automakers, underpinning their transition to electric mobility [6]

Group 1 - In August 2023, traditional fuel vehicle sales in China reached 1.074 million units, showing a month-on-month increase of 9.5% and a year-on-year increase of 12.9%, marking three consecutive months of growth [2] - Despite the overall decline in the fuel vehicle market, there has been a notable recovery in sales over the past three months, with year-on-year growth rates of 7.7%, 8.4%, and 12.9% for June, July, and August respectively [2] - The sales of traditional fuel vehicles in the first eight months of 2025 were 8.747 million units, reflecting a minimal year-on-year decline of only 0.3% compared to a 17.3% drop in 2024 [2] Group 2 - Many joint venture brands, including German and Japanese automakers, are responding to the competitive pressure from new energy vehicles by accelerating the upgrade of fuel vehicle models and offering various purchase incentives [3] - New models such as the all-new Volkswagen Sagitar L and Buick GL8 have been launched with significant price reductions and enhanced features, including advanced intelligent systems [3] - The all-new Sagitar L has a starting price reduced by approximately 20,000 yuan compared to its predecessor, while also enhancing its intelligent features [3] Group 3 - The IQ.Pilot advanced driving assistance system, developed by FAW-Volkswagen in collaboration with DJI's automotive division, aims to address the technological gaps in fuel vehicles [4] - The development of the IQ.Pilot system involved six years of collaboration, focusing on optimizing control algorithms and addressing thermal management challenges [4] - High-end fuel vehicles are also enhancing their intelligent configurations to compete with domestic high-end new energy models [4] Group 4 - The recently launched Audi A5L is notable for being the first fuel vehicle built on Audi's new PPC luxury fuel intelligent platform, featuring significant advancements in intelligent technology [5] - The A5L incorporates Huawei's advanced driving technology, utilizing a comprehensive sensor network for high-level driving assistance [5] - The main challenge for fuel vehicles in achieving intelligent features has been the limitations of their electronic and electrical architecture [6] Group 5 - Audi has developed a new E³ 1.2 electronic and electrical architecture to overcome the limitations of traditional fuel vehicles, enabling centralized control of all vehicle functions [6] - The collaboration between Audi and Huawei involves a clear division of responsibilities in the development of driving assistance technology [7] - The acceleration of intelligent transformation in fuel vehicles is expected to enhance their competitiveness and contribute to sales growth [7] Group 6 - Despite the rapid growth of new energy vehicles, fuel vehicles remain essential for many consumers, particularly families, and are still a significant source of revenue for traditional automakers [7] - The market for fuel vehicles is still substantial, with traditional automakers viewing their fuel vehicle business as crucial for their overall sales and profitability [7]

Core Insights - The traditional fuel vehicle market in China has shown signs of recovery, with sales in August reaching 1.074 million units, a month-on-month increase of 9.5% and a year-on-year increase of 12.9% [1] - The recovery in traditional fuel vehicle sales is attributed to strategic adjustments by manufacturers, including enhancements in product performance and pricing [1][2] - The introduction of new models and competitive pricing strategies by joint venture brands is driving the market, with significant upgrades in design, configuration, and technology [2][4] Industry Trends - The market for traditional fuel vehicles has experienced a notable year-on-year growth in sales over the past three months, contrasting with the overall trend of decline in recent years [1] - The sales of traditional fuel vehicles from January to August 2025 showed a minimal decline of 0.3% compared to the previous year, indicating a potential stabilization in the market [1] - Joint venture brands are responding to the competitive pressure from new energy vehicles by accelerating the launch of upgraded fuel models and offering various purchase incentives [2][3] Technological Developments - The IQ.Pilot enhanced driving assistance system, developed in collaboration with local technology firms, is being integrated into traditional fuel vehicles to improve their competitiveness [3][4] - The A5L model from Audi represents a significant advancement in fuel vehicle technology, featuring a new electronic architecture that enhances its smart capabilities [4][5] - The collaboration between Audi and Huawei in the development of driving assistance technology highlights a division of responsibilities, with each company focusing on its strengths [6] Market Dynamics - Despite the rapid growth of new energy vehicles, traditional fuel vehicles remain essential for many consumers, particularly families, and are expected to maintain a significant market presence [6][7] - The competitive landscape for traditional fuel vehicles is evolving, with manufacturers addressing previous shortcomings and enhancing their offerings to reclaim market share from electric vehicles [6][7]

Group 1 - The leadership change at FAW Audi Sales Company is aimed at addressing the declining market performance, with Guo Yongfeng replacing Li Fenggang as the executive vice president starting September 1, 2025 [1] - FAW Audi's sales have been declining for three consecutive years, with 2024 sales dropping to 611,000 units, a 12.5% year-on-year decrease [2] - Audi's overall performance in China is negatively impacted by FAW Audi's decline, with a 10.2% drop in sales to 287,600 units in the first half of 2025 [2] Group 2 - FAW Audi's slow progress in the transition to electric vehicles is concerning, with over 90% of sales still coming from fuel vehicles, while competitors like Mercedes and BMW have higher electric vehicle sales ratios [3] - The establishment of the Audi FAW New Energy production base in Changchun is expected to enhance the introduction of new energy models, starting with the Q6L e-tron [3] - FAW Audi is collaborating with Huawei to enhance the intelligence of fuel vehicles, which may help improve market performance [3]

Core Insights - The event "Heart Towards the Wilderness, Together We Drive" showcased the performance and appeal of the SAIC Volkswagen Teramont Pro alongside DJI's technological innovations [1][14] Group 1: Product Performance - The Teramont Pro features the globally launched fifth-generation EA888 engine, delivering a maximum power of 200 kW and a peak torque of 400 N·m, achieving 0-100 km/h in 7.6 seconds [3] - The vehicle boasts a low fuel consumption of 8.35 L/100 km under WLTC conditions, combining strong power with low emissions through advanced technologies like variable geometry turbocharging (VTG) [3] Group 2: Driving Capabilities - Equipped with the new DCC adaptive suspension and 4MOTION intelligent four-wheel drive system, the Teramont Pro is designed to handle diverse terrains effectively [5] - The DCC system allows for 15 customizable settings for suspension stiffness, enhancing comfort during city driving and precision during mountain driving [5] Group 3: Space and Comfort - The Teramont Pro is a seven-seater SUV with a length of 5158 mm and a wheelbase of 2980 mm, providing spacious seating across all three rows [7] - Features include luxury configurations such as a "queen passenger seat," heated second-row seats, and a flexible third-row that can switch between five and seven seats [7] Group 4: Intelligent Features - The collaboration with DJI introduces the IQ.Pilot Level 2 driver assistance system, optimized for Chinese road conditions, enhancing safety and convenience [9] - The vehicle's digital cockpit supports six-screen interaction and includes features like remote control, smart navigation, and voice recognition, offering an experience comparable to electric vehicles [9] Group 5: Purchase Policies - The Teramont Pro is priced starting at 269,900 yuan, with a transparent pricing strategy and no hidden fees [12] - First-time owners benefit from a lifetime warranty on the vehicle, ensuring peace of mind throughout the ownership cycle [12] Group 6: Market Positioning - The collaboration between SAIC Volkswagen and DJI not only highlights the product's capabilities but also positions the Teramont Pro as a versatile contender in the mid-to-large SUV market, promising enhanced travel experiences for consumers [14]

Core Viewpoint - The Chengdu International Auto Show highlights the continued relevance and evolution of fuel vehicles, particularly through the launch of Geely's new China Star series, which emphasizes luxury and advanced technology in fuel cars despite the industry's shift towards electrification [1][4][6]. Industry Overview - The domestic fuel vehicle market still holds a significant share, with a market base of 49.9% as of the first half of the year, indicating strong consumer demand [4]. - Fuel vehicle sales in China have shown growth, with July sales reaching 981,000 units, a year-on-year increase of 8.4% [4]. Company Performance - Geely's cumulative sales from January to July reached 1.6469 million units, marking a 49% year-on-year increase, with over 850,000 units sold in the new energy sector, reflecting a 126% growth [6]. - The launch of the China Star series reinforces Geely's "dual fuel" strategy, showcasing its commitment to both fuel and electric vehicles [6]. Product Features - The China Star series features three exclusive colors inspired by Chinese culture and design, emphasizing the integration of traditional aesthetics with modern luxury [6]. - The series is equipped with a 2.0TD turbo engine and an 8AT transmission, delivering a maximum power of 200 kW and torque of 400 N·m, with acceleration times of 5.6 seconds for the Star瑞 and 7.3 seconds for the Star越L [8]. - Comfort features include heated and massaging front seats, heated steering wheel, and advanced suspension systems that enhance ride quality [10]. Technological Advancements - The series incorporates advanced technology such as the GEEA3.0 electronic architecture, enabling high-speed data transmission and seamless integration of smart features [11]. - The Flyme Auto system, powered by Qualcomm's 8155 chip, enhances the in-car experience with AI-driven voice interaction capabilities [13]. - The series also includes a comprehensive suite of safety features, with Geely leading in patent filings for automotive safety technologies in China [16]. Market Impact - The cumulative sales of the Star瑞 and Star越L series have surpassed 1.6 million units, positioning them as the fastest models to reach the million-unit mark in the 100,000-200,000 yuan fuel vehicle market [18]. - The introduction of the China Star series is expected to drive a new sales peak for Geely, solidifying its position in both the fuel and new energy vehicle markets [18].

Core Viewpoint - The automotive market is experiencing a complex transformation where traditional fuel vehicles are adapting to the rise of electric vehicles (EVs) through price reductions and configuration simplifications while also enhancing their technological features to remain competitive [2][11]. Group 1: Market Performance - In July 2025, the retail sales of passenger vehicles in China reached 1.826 million units, a year-on-year increase of 6.3%, with new energy vehicles (NEVs) accounting for 987,000 units, up 12% [2]. - The retail sales of fuel passenger vehicles were 839,000 units, showing a slight growth of 0.35% [2]. Group 2: Pricing Strategies - Traditional fuel vehicle manufacturers are adopting a "price-for-volume" strategy, often accompanied by configuration reductions to attract price-sensitive consumers [3]. - The launch of the 2026 model of the Nissan Sylphy introduced a new base model priced at 75,800 yuan, which is 10,000 yuan lower than the previous model, achieved through significant configuration cuts [3][4]. Group 3: Configuration Reductions - The "省心版" model of the Nissan Sylphy has seen reductions in lighting, safety technology, and comfort features, such as the removal of the 8-inch central control screen [3][4]. - The Volkswagen Touareg "锐越版" model has also reduced comfort features while maintaining its powertrain specifications, indicating a trend of simplification across various vehicle segments [4]. Group 4: Intelligent Features - Fuel vehicles are increasingly integrating smart technologies to enhance competitiveness, with models like the Audi A5L featuring advanced driving assistance systems developed in collaboration with Huawei [7][8]. - Companies like Volkswagen are planning to enhance the smart capabilities of their fuel vehicles, leveraging economies of scale to optimize costs [10][9]. Group 5: Market Dynamics - The competition between fuel and electric vehicles is evolving, with fuel vehicles transitioning towards hybrid models and exploring new energy sources, such as biofuels and hydrogen [11][12]. - The market share of traditional fuel vehicles is projected to decline from approximately 59% in 2023 to 31% by 2030, while the global market share is expected to drop from about 47% in 2025 to between 30% and 35% by 2030 [14].

Core Viewpoint - The perception that fuel vehicles are outdated and electric vehicles represent the future is challenged by recent data showing an increase in the product appeal index and user satisfaction for fuel vehicles, as reported by J.D. Power [1][2][4]. Group 1: Market Perception and Trends - Despite the prevailing narrative favoring electric vehicles, J.D. Power's report indicates that the overall appeal index for fuel vehicles in China is projected to reach 751 points in 2025, marking a 14-point increase from 2024, the largest rise in five years [2]. - The decline in consumer interest in fuel vehicles is largely attributed to media bias favoring new energy vehicles, leading to a misconception that fuel vehicles are no longer relevant [4]. - Fuel vehicle sales in the first half of the year reached 5.426 million units, a slight decrease of 1.8% year-on-year, maintaining a market share of 49.6%, nearly equal to that of new energy vehicles [7]. Group 2: Consumer Satisfaction and Vehicle Performance - The increase in consumer satisfaction for fuel vehicles is driven by improvements in fuel economy (+17 points), entry/exit convenience (+13 points), exterior design (+12 points), interior quality (+12 points), and features/startup (+12 points) [12]. - The advancements in fuel vehicle technology, such as the introduction of the fifth-generation EA888 engine and the widespread adoption of hybrid technology by Japanese brands, have significantly improved fuel efficiency [14][12]. - Fuel vehicles continue to dominate in various segments, with popular models like Nissan Sylphy and Volkswagen Lavida remaining in the top sales rankings, indicating their sustained relevance in the market [8][10]. Group 3: Competitive Pricing and Market Dynamics - The competitive landscape has led to significant price reductions for fuel vehicles, making them more accessible; for instance, entry-level models are now priced around 50,000 yuan, previously requiring a budget of 100,000 yuan [20]. - The combination of enhanced product features, competitive pricing, and various subsidies for vehicle upgrades has improved the overall value proposition of fuel vehicles, leading to increased consumer satisfaction [20][21]. - The ongoing development of intelligent features in fuel vehicles, such as advanced driver assistance systems and upgraded infotainment options, has further enhanced their appeal to consumers [15][18].