Core Insights - The electric vehicle (EV) market is showing signs of cooling down, with companies like Ford and Nissan sharing battery factories, General Motors selling battery assets, and Honda and BMW lowering their electric vehicle sales forecasts [2] - Traditional internal combustion engine (ICE) vehicles are still significant in the market, with companies like Geely and Chery increasing their focus on fuel and hybrid vehicles as they sense a slowdown in electric vehicle growth [2][6] Market Trends - In the first quarter of this year, fuel vehicles accounted for 57% of the market share, while hybrid models surpassed pure electric vehicles in global sales [2] - The China Association of Automobile Manufacturers predicts that in 2024, the production and sales of new energy vehicles (NEVs) will reach approximately 12.88 million units, with plug-in hybrid vehicles making up 40% of this figure, a 10.4 percentage point increase from 2023 [2][3] Future Projections - By 2025, it is expected that NEV sales in China will reach around 16.5 million units, with plug-in hybrids and range-extended vehicles accounting for over 8 million units, nearly 50% of the total [3] - The year 2025 is anticipated to be a pivotal year for the NEV market due to stricter safety regulations, rising costs, and the gradual reduction of subsidies [3][4] Consumer Behavior - The perception of electric vehicles is changing, with consumers increasingly aware of the hidden costs associated with owning a pure electric vehicle, such as depreciation and battery replacement costs [5][6] - The resale value of electric vehicles is significantly lower than that of fuel vehicles, with three-year-old electric cars retaining only 30%-40% of their original value compared to 50%-60% for fuel cars [5] Competitive Landscape - Fuel vehicles are regaining consumer favor due to their established technology and infrastructure, with companies like Great Wall Motors and Geely emphasizing their commitment to the fuel vehicle market [6][7] - The trend towards hybrid and range-extended vehicles is seen as unstoppable, as they alleviate consumer concerns about range anxiety and offer a more economical option for certain driving patterns [6][7] Industry Dynamics - The current state of the NEV industry is characterized by a reliance on subsidies, leading to a "big but weak" development model, while the fuel vehicle sector continues to support economic stability and job creation [8] - The coexistence of various powertrain technologies is expected, with no single technology dominating the market in the near future [9] Technological Challenges - For pure electric vehicles to fully replace fuel vehicles, significant advancements in battery technology, cost reduction, and safety improvements are necessary [9][10] - The integration of autonomous driving technology with electric vehicles is crucial for achieving a competitive edge over fuel vehicles [9]