Core Insights - The performance of new energy vehicles (NEVs) is strong in 2025, particularly for pure electric and plug-in hybrid vehicles, while traditional fuel vehicles still hold significant demand in the central and northern regions of China [1][10] - The overall retail market for passenger vehicles is expected to grow by 9% year-on-year in 2025, driven by favorable policies and economic conditions [1] Regional Market Trends - The "strong north, weak south" characteristic continues, with northern markets showing resilience despite a slight decline in market share in August 2025 compared to the previous year [2][4] - The northeastern region has seen consistent growth, maintaining a high market share of 6.8% in August 2025, indicating a robust recovery [5][6] - The central region's market share increased by 1.5 percentage points year-on-year in August 2025, with the Yangtze River region showing signs of recovery [7] Policy Impact - Subsidy policies are encouraging the growth of low-end and economical vehicles, particularly benefiting A00 and A0 class electric vehicles in northern and northeastern regions [2][4] - The "Two New" subsidy policy is crucial for promoting the adoption of small and micro electric vehicles, highlighting the fairness of the policy [2] Vehicle Structure Changes - The demand for SUVs is notably strong in the central and western regions, driven by geographical factors, while the eastern regions show a preference for lower-end electric vehicles [9][10] - In August 2025, the penetration rate of new energy vehicles reached approximately 50% in southern regions, with some areas like Hainan and Guangxi exceeding 60% [10][11] Sales Performance - The sales performance in northern regions, particularly in Heilongjiang, Ningxia, and Xinjiang, has been strong, contributing to the overall growth in 2024 and 2025 [8][9] - The overall market structure is shifting, with a significant increase in the share of new energy vehicles in various provinces, reflecting changing consumer preferences [11]

Core Viewpoint - The article discusses the evolving structure of the regional automotive market in China, highlighting the "strong North, weak South" trend, driven by government policies and changing consumer preferences, particularly in the context of electric vehicles and economic recovery in certain regions [2][5]. Regional Market Trends Analysis - The automotive market in China is characterized by a persistent "strong North, weak South" pattern, with the Northern market showing a 5.7% increase in market share from 2022 to 2025, despite a slight decline of 0.2% in August 2025 compared to the previous year [5]. - The Northeast region has shown consistent growth, maintaining a high market share of 6.8% in August 2025, while Southern regions like East China and South China have experienced significant declines [2][5]. - The Central region's market has improved, with a 1.5% increase in market share in August 2025 compared to the previous year, indicating a recovery trend [5]. Policy Impact on Regional Structure - Government subsidy policies have significantly influenced the market, particularly benefiting low-end and economic vehicles, with A00 and A0 class electric vehicles performing well in Northern regions [2][5]. - The article notes that the policy's fairness is evident as it encourages the development of small and micro electric vehicles, which is crucial for widespread adoption [2][5]. Market Structure Changes - The demand for SUVs is notably strong in the Central and Western regions, attributed to the geographical terrain, while the Eastern regions show a preference for electric vehicles, particularly in flat areas [7][8]. - The overall structure of the automotive market is shifting, with a notable increase in the share of electric vehicles, especially in regions like Hainan and Guangxi, where the penetration rate has reached around 60% [8][9]. New Energy Market Structure Analysis - The new energy vehicle market is performing well, with significant growth in both pure electric and plug-in hybrid vehicles, particularly in Northern regions where traditional fuel vehicles still dominate [8][9]. - The penetration rate of new energy vehicles in Eastern regions exceeds 50%, while the demand for traditional fuel vehicles remains high in the Central and Western regions, where they account for approximately 60% of the market [8][9].

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].