Core Viewpoint - The annual character "resilience" reflects the state of the Chinese automotive market in 2025, showcasing its ability to adapt amidst policy fluctuations and domestic demand pressures [2] Market Performance - In December, the automotive market experienced a significant decline in daily retail sales, with an average of 42,000 units sold in the first week, representing a year-on-year decrease of 32.3% and a month-on-month decrease of 7.8% [3] - The second week saw a recovery in daily retail sales to 67,000 units, marking an 8.8% increase from the previous week, although it still reflected a year-on-year decline of 16.8% [3][4] - Predictions for the third week estimate daily retail sales to reach 73,000 units, with the year-on-year decline expected to narrow to 15.2% [4] Monthly Forecasts - The total retail sales for December are projected to be 2.3 million units, indicating a year-on-year decline of 12.7% [4] - The strong performance of the new energy vehicle (NEV) market is a key support for market resilience, with NEV retail sales from December 1 to 14 reaching 476,000 units and a penetration rate of 62.3% [4] Policy and Market Challenges - The automotive market faces challenges as many regions are phasing out trade-in subsidies, leading to weakened replacement demand and consumer hesitation regarding new policies for 2026 [6] - The recent Central Economic Work Conference emphasized the need to optimize the implementation of new policies to stabilize consumption, which could alleviate current market uncertainties [6] Final Week Outlook - The last week of December is expected to see a 9.3% year-on-year increase in the passenger vehicle market, with daily retail sales projected to exceed 110,000 units [8] - The performance in this final week is crucial for closing the year and setting a stable foundation for the automotive industry in 2026 [8]