Core Insights - The Chinese passenger car market achieved a record high in June, with wholesale sales reaching 2.5 million units, a year-on-year increase of 15% [1][2] - Intense price competition is escalating, particularly among brands like Geely, XPeng, and Leap Motor, which are offering deeper discounts compared to industry leader BYD [1][5] - The ability of automakers to halt price wars will be a focal point for market observers, especially under the backdrop of anti-involution policies [1][7] Sales Performance - June saw wholesale, retail, and production figures all hitting monthly records, with wholesale sales at 2.5 million units, retail deliveries at 2.1 million units (up 18% year-on-year), and production increasing by 13% [2][4] - Exports also reached a new high of 480,000 units, marking a 28% year-on-year increase [4] Price Competition - The report highlights that retail discounts have widened across brands, with Geely's discounts increasing by 3.1 percentage points, XPeng's by 3.5 percentage points, and Leap Motor's by 1.2 percentage points [5][6] - BYD's recent price adjustments have not matched the aggressive discounting strategies of its competitors [5][7] New Energy Vehicle Growth - New energy vehicles (NEVs) continue to show strong growth, with wholesale sales reaching 1.24 million units in June, a 27% year-on-year increase [8] - The penetration rate of electric vehicles remains high at 50% for June, contributing to a 9 percentage point increase year-on-year for the first half of 2025 [8] - BYD holds a 30% market share in the NEV sector, with June sales of 378,000 units, while Tesla reported sales of 72,000 units [8]