Core Insights - The retail sales of passenger cars in China reached 1.834 million units in July, showing a year-on-year growth of 6% but a month-on-month decline of 12% [1] - The cumulative retail sales for the year reached 12.736 million units, reflecting a 10% year-on-year increase [1] - The average price of passenger cars in July 2025 was 169,000 yuan, down 800 yuan from the same period last year, indicating a trend of price reduction in the market [1][3] Price Trends - The average price of conventional fuel vehicles has increased from 150,000 yuan in 2019 to 183,000 yuan in 2024, but is expected to decline to 181,000 yuan in the first seven months of 2025 [1][3] - The average price of new energy vehicles has decreased from 184,000 yuan in 2023 to 161,000 yuan in 2025, with July's average at 162,000 yuan [1][3] - The luxury car average price for the first seven months of 2025 is 362,000 yuan, a slight decrease from 2024, while the average for joint venture brands is 175,000 yuan, showing a slight increase [2][14] Market Dynamics - The decline in average prices is attributed to increased sales in the mid-to-low-end market, driven by policies promoting vehicle scrappage and trade-in subsidies [2][5] - The penetration rate of new energy vehicles is increasing, with microcars showing a 100% penetration rate in July, and A0-class small cars at 72.9% [10] - The market share of traditional fuel vehicles remains strong in the 15-20 million yuan range, while the high-end market is experiencing a decline [12][14] Brand Performance - The average price for new force brands decreased by 3.1 million yuan in the first seven months of 2025, indicating volatility in this segment [14] - The average price for independent brands is 122,000 yuan, down 500 yuan year-on-year, reflecting competitive pressure in the market [14] - The performance of high-end hybrid vehicles is weaker compared to the growth of pure electric vehicles, which are gradually gaining market share [14]