Group 1 - The core viewpoint is that the import car market in China continues to shrink, with a significant decline in both import volume and sales of passenger vehicles in the first half of the year [1][2] - In the first half of the year, cumulative imports of passenger cars reached 221,000 units, a year-on-year decrease of 32.1%, while cumulative sales were 277,000 units, down 14.5% [1] - The decline is attributed to the rising competitiveness of domestic new energy vehicles and accelerated localization of imported cars, leading to weakened expectations among import car manufacturers [1] Group 2 - The sales structure shows that all three major vehicle categories—sedans, SUVs, and MPVs—experienced double-digit declines, with MPVs facing the largest drop [1] - In terms of vehicle classification, mid-to-large cars continue to dominate the import car market, maintaining a share of over 60%, with a 3.3 percentage point increase in share for mid-to-large cars in the first half of 2024 [1] - Luxury brands remain the absolute sales leaders, accounting for 91% of total sales, despite a year-on-year decline across non-luxury, luxury, and ultra-luxury segments [2] Group 3 - The top three sales regions are Guangdong, Jiangsu, and Zhejiang, all showing year-on-year declines in sales, with Zhejiang experiencing the largest drop of 19.2% [2] - Guangdong's sales decline was the smallest at 3.1%, supported by growth in models like Lexus RX and ES, while sales of models such as Audi A5 and BMW 6 Series contributed to the decline in Zhejiang [2]

Core Insights - The Chinese imported car market has seen a significant decline, dropping from a peak of 1.43 million units to 700,000 units, a reduction of over 50% in the past decade, with a continuous downward trend for seven years [2][5] - The market is further impacted by the U.S. imposing tariffs on Chinese imports, including cars, which has led to increased prices and reduced demand for imported vehicles [3][4] - Domestic brands are gaining market share due to competitive pricing and advancements in electric vehicles, contributing to the decline of the imported car market [6][7] Market Trends - In the first two months of 2025, imported car sales were 56,000 units, a year-on-year decline of 45.8%, with an import value of $30.04 billion, down 50.3% [2][5] - The U.S. has increased tariffs on Chinese imports, with rates rising from 34% to 125%, significantly affecting the pricing of German luxury brands like Mercedes-Benz and BMW [3][4] - The overall impact of tariffs on the imported car market is expected to manifest at retail levels by May 2025, with luxury brands facing the most significant challenges [4][5] Competitive Landscape - The rise of domestic brands, particularly in the electric vehicle segment, has led to a substantial decline in the demand for imported fuel vehicles [6][7] - Imported luxury cars are primarily supported by high-end demand, but the overall market for super-luxury imports has seen a decline of 46% in 2024 [8] - The shift towards local production by foreign car manufacturers is further compressing the market share of imported vehicles [7][9] Consumer Behavior - Consumers are increasingly opting for domestic vehicles due to better value propositions and advancements in technology, which have made local brands competitive with imported ones [6][8] - The demand for imported cars is expected to shift towards serving niche markets that prioritize brand image and unique features, rather than mass-market appeal [9]