Core Viewpoint - The announcement from the Ministry of Industry and Information Technology, Ministry of Finance, and State Taxation Administration indicates that the purchase tax exemption policy for new energy vehicles will continue from January 1, 2026, but with significantly raised technical thresholds to promote high-quality industrial development [1][2]. Group 1: Policy Overview - The purchase tax exemption for eligible new energy vehicles will remain in effect until the end of 2027, with a 50% tax reduction in 2026 and a maximum tax reduction of 15,000 yuan per vehicle [2][7]. - The new policy links tax benefits directly to compliance with updated technical standards, marking a shift from subsidy-driven support to innovation-driven growth in the new energy vehicle sector [2][8]. Group 2: Technical Requirements - For pure electric passenger vehicles, the energy consumption must meet the latest national standards, ensuring compliance with GB36980.1—2025 [3]. - Plug-in hybrid vehicles must achieve a minimum pure electric range of 100 kilometers, a significant increase from the previous requirement of 43 kilometers, reflecting a 132% rise [4][8]. - Fuel consumption for plug-in hybrids must be reduced according to vehicle weight, with specific thresholds set for different weight categories [4]. Group 3: Transition and Compliance Management - Vehicles listed in the tax exemption directory before December 31, 2025, that meet the new requirements will automatically transition to the 2026 directory, while non-compliant models will be removed [5][7]. - New models seeking inclusion in the 2026 directory must be submitted by December 12, 2025, with a dynamic regulatory mechanism allowing for reapplication of previously removed models [6]. Group 4: Market Impact and Future Trends - The new technical requirements are expected to accelerate product iteration and enhance energy efficiency and range in the new energy vehicle market [8]. - Current mainstream plug-in hybrid models already exceed the new 100-kilometer electric range requirement, indicating readiness for compliance [9]. - By 2030, the market is projected to balance between pure electric, plug-in hybrid, and fuel vehicles, each accounting for approximately 30% of the market share, driven by the new policy's emphasis on technological advancement [9].

Core Viewpoint - The 2025 Chengdu International Auto Show highlights the dominance of domestic brands in the Chinese automotive industry, showcasing a significant transformation characterized by electrification and intelligent technology [3][10]. Group 1: Dominance of Domestic Brands - Domestic brands have taken a leading position at the Chengdu Auto Show, with BYD prominently featuring a strong lineup of models and advanced technologies [5][10]. - Chery showcased its five brands and 31 models, emphasizing lifestyle experiences that resonate with local culture [7]. - New state-owned enterprise Changan presented a comprehensive technology matrix through collaborations with Huawei and CATL, aiming for an annual sales target of 3 million vehicles [9]. Group 2: Absence of Luxury Brands - Major luxury brands such as Rolls-Royce, Bentley, and Porsche were notably absent from the show, indicating a shift in market dynamics [9][10]. - The absence of these brands further emphasizes the rise of domestic manufacturers and their growing influence in the market [10]. Group 3: Diverse Technology Routes - The auto show featured a variety of new energy vehicle technologies, including pure electric, plug-in hybrid, and range-extended models, creating a competitive landscape [11][12]. - Significant advancements in battery technology and vehicle performance were highlighted, with models achieving impressive ranges and efficiency [11][12][13]. Group 4: Market Trends and Adaptation - The automotive market is witnessing a trend towards "scene segmentation" and "technology downscaling," with companies focusing on user-specific scenarios [15][16]. - The penetration rate of new energy vehicles has reached around 50%, indicating a stable market for both electric and traditional fuel vehicles [16]. Group 5: Industry Transformation - The Chinese automotive industry is undergoing a profound transformation, with domestic brands increasingly challenging traditional Western products [17]. - The need for brands to rebuild emotional connections with consumers has become a critical focus for all manufacturers in this evolving landscape [17].