Core Insights - The traditional fuel vehicle market in China is experiencing a resurgence, with sales reaching 902,000 units in August, a year-on-year increase of 13.5% [1][2] - The recovery of fuel vehicles is attributed to multiple factors, including market rationality returning, technological upgrades, and the implementation of "old-for-new" policies [2][5] - Despite the short-term recovery of fuel vehicles, the dominance of new energy vehicles (NEVs) is firmly established, with NEV retail penetration reaching 55.2% in August [5][6] Sales Performance - In August, domestic passenger car sales totaled 2.007 million units, with fuel vehicles accounting for 902,000 units, marking a year-on-year increase of 10.7 million units [1][2] - From January to August, cumulative domestic passenger car sales reached 14.747 million units, with fuel vehicle sales at 7.14 million units, a year-on-year increase of 1.1% [1][2] Market Dynamics - The "old-for-new" policy is significantly driving the demand for vehicle replacements, benefiting fuel vehicles as traditional mainstays [2][5] - Price reductions and unified pricing strategies by manufacturers are effectively stimulating consumer interest in fuel vehicles [2][5] - Technological advancements in fuel vehicles are narrowing the gap with NEVs in terms of smart features, enhancing their competitiveness [2][3] Future Outlook - The automotive industry is expected to enter a phase of "diversity coexistence and gradual transition," with fuel vehicles continuing to hold a significant market share [4][6] - Analysts predict that by 2030, 60% of new vehicles in China will still require internal combustion engines, with a substantial market for hybrid and extended-range vehicles [6][7] - The NEV market is projected to see significant growth, with estimates suggesting sales could reach 15-16 million units in 2025, surpassing traditional fuel vehicle sales for the first time [6][7]