Core Insights - The article discusses the evolving structure of the regional automotive market in China, highlighting the impact of national policies on consumer behavior and market dynamics, particularly in the context of the "Two New" policy aimed at boosting domestic demand for passenger vehicles. Group 1: Regional Market Trends - The automotive market is experiencing a significant divergence, with a notable contrast between regions, particularly between the stronger northern markets and the weaker southern markets [1][2] - The northern market has shown a strong performance, especially in the Northeast and Central Yangtze regions, while the southern market remains relatively weak [2] - In November 2025, the northern market's share decreased by 3.7 percentage points compared to the previous year, but it increased by 5.4 percentage points compared to 2022, indicating a complex market structure influenced by subsidy policies [2] Group 2: Policy Impact on Market Structure - The subsidy policies have led to a notable performance in the northern regions, while some areas like Liaoning and Tianjin have shown weaker results [3] - The aging population and the return of migrant workers to the north are contributing factors to the market's potential growth [3] Group 3: Vehicle Category Market Structure - The SUV segment is experiencing strong growth, particularly in the central and western regions, while the eastern regions show weaker demand for SUVs [4] - The "Two New" subsidy has positively impacted the entry-level sedan market, while the eastern regions are seeing a rise in the popularity of pure electric sedans [4] Group 4: New Energy Vehicle Dynamics - New energy vehicles (NEVs) are performing well, with pure electric and plug-in hybrid vehicles showing strong growth [5] - Traditional fuel vehicles still hold a significant market share in the central and northern regions, while NEVs have surpassed 50% in the eastern regions [5] Group 5: Consumer Behavior and Subsidy Effects - The "Two New" subsidy has been most effective for mid-to-low-end vehicles, encouraging consumer interest in economical options [7] - The push for vehicle scrappage and trade-in subsidies has provided a competitive advantage for NEVs over traditional fuel vehicles [7] Group 6: Brand Structure Changes - The luxury car market in cities like Shanghai and Beijing is experiencing a decline in market share for luxury brands, while domestic brands are rapidly gaining ground [8] - The market share of joint ventures is approaching that of luxury brands in major cities, indicating a significant shift towards domestic alternatives [8]