Passenger Vehicle Division: From January 1st to 12th, the retail sales of new energy passenger vehicles reached 206,000 units, an 8% increase compared to the same period last year.

On January 15, the China Passenger Car Association released the Market Scan report (January 1-January 12, 2025). From January 1-12, the retail sales of new energy passenger cars reached 206,000 units, an 8% increase compared to the same period last year, but a 50% decrease compared to the previous month. The cumulative retail sales for the year so far amount to 206,000 units, an 8% increase compared to last year. During the same period, nationwide passenger car manufacturers wholesaled 261,000 units of new energy vehicles, a 45% increase compared to last year, but a 42% decrease compared to the previous month. The cumulative wholesale sales for the year so far amount to 261,000 units, a 45% increase compared to last year. Passenger Cars: From January 1-12, the market retail of passenger cars reached 533,000 units, a 21% decrease compared to the same period last year, and a 36% decrease compared to the previous month. The cumulative retail sales for the year so far amount to 533,000 units, a 21% decrease compared to last year. During the same period, nationwide passenger car manufacturers wholesaled 689,000 units of vehicles, a 14% increase compared to last year, but a 23% decrease compared to the previous month. The cumulative wholesale sales for the year so far amount to 689,000 units, a 14% increase compared to last year. In January 2025, the national passenger car market retail started from a low level. In the first week of January, the average daily retail sales of passenger cars were 39,000 units, a 28% decrease compared to the same period last year, and a 38% decrease compared to the previous month. In the second week of January, the average daily retail sales of passenger cars were 48,000 units, a 16% decrease compared to the same period last year, and a 35% decrease compared to the previous month. From January 1-12, the market retail of passenger cars reached 533,000 units, a 21% decrease compared to the same period last year, and a 36% decrease compared to the previous month. There has been a 21% decrease in cumulative retail sales for the year so far compared to last year. In 2024, with the encouragement of the national renewal of scrapped vehicles and the subsidy policy of replacing old cars with new ones in various regions, the car consumption in December 2024 achieved strong growth. Although the policy of renewal of scrapped vehicles and old-for-new mainly supported by central funds has been continuously implemented, consumers still have a wait-and-see attitude, waiting for more benefits brought by the renewal of scrapped vehicles and old-for-new policy, and the enthusiasm for car purchases at the beginning of the year is not high. With the clear subsidy policy for 2025, consumers' wait-and-see attitude has slightly improved, returning to the purchasing scale at the beginning of 2023, but still there is a certain gap compared to the hot period before the 2024 Spring Festival. On January 8, the National Development and Reform Commission and the Ministry of Finance issued a notice on the implementation of the large-scale equipment renewal and old-for-new policies in 2025, improving the subsidy standards for car replacement and renewal. For individual consumers who transfer the registration of a passenger car under their name and purchase a new passenger car, they will receive subsidies for car replacement and renewal. The maximum subsidy for purchasing a single new energy passenger car should not exceed 15,000 yuan, and the maximum subsidy for purchasing a single fuel passenger car should not exceed 13,000 yuan. At present, the old-for-new policy aims to consume the peak inventory of fuel vehicles from 2015 to 2020. It is not enough to consume this base of over 100 million vehicles only in the second half of 2024. We also hope that local governments can clarify the follow-up subsidy policy for old-for-new as early as possible, stabilize consumer sentiment early, and achieve stable and sustainable consumption. In early 2025, the wholesale sales volume of passenger car manufacturers nationwide is not strong. In the first week of January, the average daily wholesale sales volume of passenger car manufacturers was 59,000 units, a 26% increase compared to the same period last year, but a 16% decrease compared to the previous month. In the second week of January, the average daily wholesale sales volume of passenger car manufacturers was 56,000 units, a 6% increase compared to the same period last year, but a 27% decrease compared to the previous month. From January 1-12, nationwide passenger car manufacturers wholesaled 689,000 units, a 14% increase compared to last year, but a 23% decrease compared to the previous month. The cumulative wholesale sales for the year so far amount to 689,000 units, a 14% increase compared to last year. The "Two New" policies in 2025 continue to exert efforts, to some extent, to restore confidence in the first quarter. However, the market is facing challenges in January due to the early Spring Festival, policy observation, and the lingering effects of 2024. Some manufacturers had predicted a low start in 2025, so there is a certain amount of transfer to ensure a positive trend at the beginning of the year, which also led to a relatively good growth in wholesale sales for the first week. Due to the tight demand, competition among car companies has intensified, with some companies and brands announcing price cuts and promotions in January. However, the effects are not yet clear. Currently, dealers are extremely cautious, so the wholesale sales volume of manufacturers in the second week has relatively weakened.