Core Viewpoint - The article discusses the structural changes in the Chinese automotive market, highlighting the divergence between northern and southern regions, the impact of government subsidies on vehicle types, and the acceleration of new energy vehicle adoption, particularly in northern provinces [2][4][6]. Regional Market Trends Analysis - The northern automotive market is showing strength, with a 0.9 percentage point increase in market share in July 2025 compared to the previous year, and a 5.6 percentage point increase compared to 2022 [4][5]. - The northeastern region has been experiencing continuous growth, maintaining a high market share of 5.9% in July 2025 [4]. - In contrast, southern regions, particularly East China, are seeing significant declines in market performance, with notable drops in market share [4][6]. Policy Impact on Regional Structure - Government subsidies are favoring mid-range and economic vehicles, leading to a recovery in the economy segment, particularly in northern regions [2][6]. - The A00 and A0 class electric vehicles are benefiting the most from these subsidies, indicating a fair policy approach that promotes the adoption of small electric vehicles [2][6]. New Energy Market Structure Analysis - The penetration of new energy vehicles is increasing, with significant growth in plug-in hybrid models in northern provinces, showcasing their advantages in colder climates [2][9]. - In July 2025, the share of new energy vehicles in regions like Hainan and Guangxi reached around 60%, indicating strong growth [10]. - The overall market for new energy vehicles is robust, with traditional fuel vehicles still holding a significant share in the northern and midwestern regions, while eastern regions are seeing a higher proportion of new energy vehicles [9][10].