Core Viewpoint - The automotive market experienced a significant downturn in November, with a notable decline in sales across various models, indicating a fierce competitive landscape and potential challenges ahead for the industry [3][6]. Sales Performance - In November, among the models with sales exceeding 3,000 units, 139 experienced a decline, with 17 models seeing a drop of over 3,000 units. Notably, the Changan Lumin saw a drastic decrease in sales from 20,520 units to 11,744 units, a decline of 43.7%, dropping its ranking from 12th to 53rd [3][4][10]. - The Leidao L90, after three months post-launch, fell below 10,000 units for the first time, selling 5,970 units with a 49.1% drop, ranking 119th. The Deep Blue S07's sales plummeted from 8,761 to 3,819 units, a 56.4% decline, ranking 169th [4][5][12]. - Other models like the Haval Menglong PHEV and Leap C16 also saw significant declines, with sales dropping over 3,000 units, leading to rankings outside the top 100 [4][5]. New Energy Vehicles - Despite some declines, certain new energy vehicle manufacturers showed resilience. For instance, Leap's new model Lafa5 delivered 7,397 units in its launch month, while NIO's ES8 saw an increase in deliveries to 10,689 units, up by 3,986 units from the previous month [5][6]. Market Trends - The overall retail sales of passenger vehicles in November reached 2.225 million units, reflecting an 8.1% year-on-year decline, which is a significant increase from the 0.5% decline in October [5][6]. - The automotive industry is expected to face an even more intense competitive environment in 2026, suggesting a potential for further market consolidation and challenges for existing players [6].

Core Viewpoint - The Chinese automotive market faces uncertainty as it transitions into the "post-subsidy era," with many companies expressing concerns about market volatility and competition intensifying [1][2]. Group 1: Market Conditions - By the end of 2025, the anticipated "tail effect" in the automotive market remains uncertain, with many companies unprepared for the challenges ahead, particularly those without existing orders [2]. - The withdrawal of local vehicle replacement subsidies and the adjustment of the new energy vehicle purchase tax from full exemption to a 50% reduction are significant factors affecting consumer purchasing decisions [2][3]. - The overall automotive sales in China from January to October reached 27.687 million units, reflecting a year-on-year growth of 12.4% [6]. Group 2: Competitive Landscape - The competition among automotive companies is expected to become more transparent and brutal, focusing on product strength, cost control, and user experience as the market moves away from policy-driven sales [1][6]. - Companies are increasingly adopting "bottom-line" subsidy strategies to boost year-end sales, which may raise sales costs and challenge smaller brands with limited profit margins [4][7]. - The market is predicted to experience significant differentiation, with leading companies leveraging scale advantages and brand influence to withstand price competition, while smaller brands may struggle with cash flow and product iteration [8][9]. Group 3: Future Outlook - The automotive industry is entering a phase where only a few strong brands are expected to survive, with predictions suggesting that in the future, only five dominant brands will remain in the market [11]. - As the market shifts away from reliance on policies, companies lacking core technology and cost control will find it increasingly difficult to maintain stability [10]. - The transition to a more mature and stable new energy vehicle market is anticipated, but not all companies will be able to remain competitive [8][10].