Core Insights - The traditional fuel vehicle market in China is experiencing unexpected growth, with sales reaching 1 million units in September, marking a 1.7% increase year-to-date compared to the previous year [1][5][10] - The shift in consumer demand is leading to a higher concentration of fuel vehicle sales in the mid-to-high-end market, as entry-level models are being replaced by plug-in hybrid vehicles [1][6] Sales Performance - In the first nine months of the year, traditional fuel vehicle sales exceeded 8 million units, reversing a significant decline of nearly 18% from the previous year [1][5] - The promotional efforts for traditional fuel vehicles have intensified, with discounts reaching 23.9%, compared to 10.2% for new energy vehicles [5][10] Pricing Strategies - Major brands like Dongfeng Nissan and Beijing Hyundai are adopting a "one-price" policy to eliminate price negotiation, which has led to increased foot traffic and sales in dealerships [6][9] - The pricing of traditional fuel vehicles has significantly decreased, with models like the Dongfeng Nissan Sylphy dropping to 60,000-70,000 yuan from over 100,000 yuan [5][6] Policy Impact - The "trade-in" policy for fuel vehicles has been effective, allowing older models to qualify for subsidies, thus stimulating sales [5][10] - Cities with favorable subsidy policies, such as Chengdu, have seen notable increases in fuel vehicle sales, indicating the effectiveness of government incentives [5][10] Technological Advancements - Traditional fuel vehicles are undergoing significant upgrades in smart technology, with new models featuring advanced driver assistance systems and smart cockpit functionalities [6][9] - The integration of technology in fuel vehicles is essential to meet consumer expectations and compete with electric vehicles [9][10] Market Outlook - The overall automotive market in China is expected to see a 6% to 7% growth in retail sales for the year, despite a potential slowdown in new energy vehicle sales growth [10][11] - Regulatory measures are being implemented to stabilize market prices and prevent excessive competition among manufacturers [10][11]