Core Insights - Retail sales of passenger vehicles in China fell by over 8% year-on-year to 2.23 million units in November 2025, down from 2.45 million units in the same month last year, marking the second consecutive month of decline [1][2] - The market is experiencing saturation after a strong rebound last year, with sales having increased by 18% in November 2024 [2] - China's GDP growth slowed to 4.8% year-on-year in Q3 2025, influenced by weakening consumer sentiment and trade tensions with the US [2] Vehicle Sales Breakdown - Sales of internal combustion engine (ICE) vehicles decreased by 22% to 910,000 units, while new energy vehicle (NEV) sales increased by 4% to 1.32 million units, representing over 59% of total sales [3] - In the first eleven months of 2025, overall passenger vehicle retail sales rose by 6.6% to 21.622 million units, with NEV sales increasing by nearly 20% to 11.47 million units, accounting for 53% of total passenger vehicle sales [4] - ICE vehicle sales during the same period totaled 10.15 million units [4] Government Policy and Market Expectations - The Chinese government plans to reduce its NEV stimulus program by the end of the year, with expectations of a strong surge in NEV sales in December as confirmed by the CPCA [5]