Core Viewpoint - The May 2025 new energy passenger vehicle market is expected to perform well due to improved external trade conditions and the implementation of local consumption promotion policies, despite having fewer working days compared to May 2024 [1][2]. Group 1: Market Performance - In May 2025, the market is projected to see strong performance driven by the "two new" policies and local consumption incentives, with significant participation in offline events like auto shows [1]. - As of May 31, 2025, the number of applications for the vehicle trade-in subsidy reached 4.12 million, with an estimated 1.23 million applications in May, marking a 13% increase from April [1]. - Approximately 70% of private car buyers benefited from the trade-in policy, indicating a shift towards consumption upgrades, while first-time buyers dropped to 30% [1]. Group 2: Company Performance - Several automakers, including Geely, Leap Motor, FAW Bestune, Arcfox, Dongfeng Nissan, and Changan Mazda, achieved record high sales in new energy vehicles in May [1]. - Companies like Changan, Xpeng, Great Wall, NIO, and GAC Toyota reported their top three monthly sales performances, showcasing strong results from many second-tier manufacturers [1]. - According to data from the China Passenger Car Association, manufacturers with wholesale sales exceeding 10,000 units accounted for 90% of the total new energy vehicle sales in April 2025, with May's estimated wholesale sales reaching 1.24 million units, a 38% year-on-year increase and a 9% month-on-month increase [2].

Core Insights - The retail sales of new energy vehicles in Xuzhou increased by 72.7% year-on-year in the first quarter, driven by the effective implementation of the vehicle trade-in policy, indicating strong consumer preference and a green transformation in the automotive market [1][2][7] Policy Collaboration - The vehicle trade-in policy has emerged as a key driver for upgrading automotive consumption, with national and local policies promoting the transition to new energy vehicles [2][3] - The Jiangsu provincial government has set a unified maximum subsidy standard for vehicle trade-ins, providing incentives for consumers to switch from traditional fuel vehicles to new energy vehicles [2][3] Market Response - Xuzhou has actively responded to national policies by refining its vehicle trade-in measures and offering attractive subsidies, resulting in significant improvements in automotive consumption [2][3] - The city has allocated 10 million yuan in municipal funds for automotive consumption subsidies, further stimulating demand for new energy vehicles [3][4] Consumer Trends - The popularity of new energy vehicles is rising, with many consumers willing to replace traditional fuel vehicles for more environmentally friendly options, supported by the cumulative effects of various policies [3][5] - Data shows that consumers are increasingly opting for mid-to-high-end models and new energy vehicles, reflecting a trend towards consumption upgrading [7] Sales Performance - The automotive consumption subsidy policy has led to a positive market response, with significant applications for vehicle scrapping and trade-in subsidies reported [7] - The Xuzhou International Auto Show highlighted the dominance of new energy vehicles, showcasing various smart models and attracting consumer interest [5][6] Future Outlook - The combination of policy support and market dynamics is expected to drive further breakthroughs in automotive consumption in Xuzhou, establishing a model for nationwide automotive consumption upgrades [7]