Core Insights - The 28th Chengdu International Auto Show opened amid heavy rain, with a noticeable decline in attendance and participation from luxury brands, indicating challenges in the market [1][4][16] - Traditional luxury brands in China are facing significant challenges, with Porsche's sales in the first half of 2025 dropping by 28% compared to the same period in 2024, and a staggering 42% decline in Q1 deliveries [4][16] - The reduction in the luxury car consumption tax threshold has further impacted high-end brands, particularly affecting brands like Porsche that rely on volume sales [4][16] Luxury Brands' Absence - The absence of luxury brands such as Porsche, Ferrari, and Lamborghini at the auto show highlights the severe challenges they face in the Chinese market [4][16] - Porsche's CEO acknowledged that the decline in sales is due to a slowdown in electrification and supply chain issues, prompting a strategic shift from expansion to focusing on profitability [4][16] Domestic Brands' Resilience - In contrast to the luxury brands, domestic and some joint venture brands are actively seeking breakthroughs through technological innovation and product upgrades [5][16] - Chery showcased 31 significant models, emphasizing its strong product lineup and technological capabilities, with the highlight being the Wind Cloud X3L [7] - BYD occupied an entire exhibition hall, presenting 16 new and upgraded models across various segments, showcasing its ambition in the market [9][16] Joint Ventures and Collaborations - The German automotive giants are adapting through local collaborations, with Audi partnering with Huawei and BMW deepening its AI strategy with Alibaba [5][13] - Buick's introduction of its high-end new energy sub-brand "Zhijing" marks a significant transformation, aiming to regain market share after previous declines [11][16] Market Dynamics and Consumer Sentiment - Despite the technological advancements, the auto show revealed a sense of "involution," with many brands focusing on similar features, leading to consumer fatigue [14][16] - The market share of domestic brands reached 68.6% in the first seven months of the year, reflecting a 24.4% year-on-year growth, but concerns about technological homogenization persist [14][16] Conclusion - The contrasting performances of absent luxury brands and the strong presence of domestic brands at the Chengdu Auto Show reflect the ongoing transformation in the Chinese automotive industry, characterized by market competition, strategic shifts, and evolving consumer preferences [16]

Core Insights - Changan Automobile has achieved strong sales performance in Q1, with total sales exceeding 700,000 units, and March sales reaching 268,100 units, a year-on-year increase of 3.5% [1] - The company’s new energy vehicle (NEV) segment saw significant growth, with March sales surpassing 87,000 units, marking a 62% year-on-year increase [1] - Changan's three major NEV brands, including Changan Qiyuan, Deep Blue, and Avita, are entering a strong growth phase, with notable sales increases across their product lines [3][5] Sales Performance - In March, Deep Blue delivered 24,400 new vehicles, reflecting an 86.7% year-on-year increase and a 30% month-on-month increase [5] - Avita's sales exceeded 10,000 units in March, achieving a year-on-year and month-on-month doubling [5] - Changan's overall sales in March reached 109,500 units, with the fourth-generation CS75PLUS achieving impressive fuel efficiency [5] Strategic Initiatives - Changan has launched the "Beidou Tianshu 2.0" plan to enhance its smart technology capabilities, focusing on four core areas: smart products, operations, manufacturing, and ecosystem [6][10] - The company plans to introduce 35 new smart vehicle models over the next three years and will cease development of non-smart products [10] Global Expansion - Changan is entering a critical year for global development, having completed its "152" global layout, which emphasizes the company's commitment to international markets [11] - Key initiatives for this year include the launch of the Southeast Asia Rayong factory, the start of KD projects in the Eurasian region, and the establishment of a subsidiary in Brazil [13] - The company aims to enhance local production, brand operations, and customer service capabilities across six major regions, marking a transition from "brand going global" to "industry going global" [13]