Cui Dongshu: Price war pressure relatively alleviated, the spring car market enters a good state of continued strength.

Cui Dongshu wrote that with the strengthening of the national scrappage update promotion subsidy, the market has warmed up, and the driving effect on the automobile market is very obvious. Therefore, the pressure of price wars has relatively eased, and the spring car market has entered a good state of continued strength. The price promotion intensity for 2025 is still at a strong level. In January, 7 models reduced their prices, while in February, 21 models reduced their prices. The number of models with price reductions in January and February is relatively high at 28, which is similar to last year. This reflects that the price reduction trend is still strong. In the first two months of 2025, the average price reduction for new pure electric vehicle models was 19.4 million yuan, with a reduction of 3.88 million yuan, and a reduction intensity of 17%. For plug-in hybrid models, the average price reduction was 12.1 million yuan, with a reduction of 1.3 million yuan, and a reduction intensity of 10%. For traditional fuel vehicles, the average price reduction was 16.2 million yuan, with a reduction of 2 million yuan, and a reduction intensity of 11%. For hybrid models, the average price reduction was 29.4 million yuan, with a reduction of 2 million yuan, and a reduction intensity of 6%. For extended-range models, the average price reduction was 17.9 million yuan, with a reduction of 1.65 million yuan, and a reduction intensity of 8%. New energy vehicles have multiple blessings, with a large number of new car releases, achieving a repositioning of new car prices. Therefore, there are not many promotions, but the price reductions are aggressive. In February 2025, the promotion of new energy vehicles gradually reached a high of 12.5%, an increase of 2 percentage points compared to the same period, maintaining overall stability. Traditional fuel vehicles face an aging trend, serious issues of declining birth rates, and a lack of opportunities to adjust prices and improve product competitiveness for new cars, relying only on promotions to boost sales. In February 2025, the promotion of traditional fuel vehicles gradually decreased to 21.7%, an increase of 3.6 percentage points compared to the same period, but a decrease of 0.2 percentage points compared to the previous month. In February 2025, the promotion of luxury cars gradually reached a high of 25.8%, an increase of 5.6 percentage points from the same period. The promotion of joint venture fuel vehicles gradually reached a high of 21.3% in February 2025, an increase of 2.3 percentage points compared to the same period. The promotion of independent fuel vehicles gradually reached a high of 16.6% in February 2025, an increase of 3.3 percentage points compared to the same period. In summary, the analysis tracks the overall price reduction and promotion trends in the automobile market. The price reduction trend in 2025 is strong, with many new models experiencing price reductions. The promotion intensity for new energy vehicles is increasing significantly, while there is a gradual decline in promotions for traditional fuel vehicles. Luxury cars and joint venture fuel vehicles are also showing strong promotion trends. Independent fuel vehicles are also experiencing increased promotion.Independent car companies saw a rapid increase in promotions from March to August 2024, followed by overall stability in promotions from August to December. As promotions for new energy vehicles from independent companies were lower than those for traditional vehicles, the proportion of exports increased, leading to relative stability in overall promotions.6. Track the promotion intensity of different power sources At the beginning of 2025, the promotion pressure for conventional fuel vehicles and hybrid vehicles is relatively low, while the promotion for new energy vehicles is relatively intense, especially for plug-in hybrids, with a promotion increase of 3.8 percentage points compared to December of the previous year. Pure electric and extended range vehicles have only increased their promotions by around 1.3 percentage points compared to the end of 2024. Specific price reduction analysis for different types of vehicles: 1. Pure electric price reduction analysis In January and February 2025, the average price reduction for new pure electric vehicle models was 194,000 yuan, with a reduction of 38,800 yuan, and a reduction intensity of 17%. The overall price reduction for pure electric vehicles in January and February of this year is quite significant, especially for some models with price reductions of over 20%. With some model adjustments, the reduction intensity is still quite remarkable. 2. Plug-in hybrid price reduction analysis In January and February 2025, the average price reduction for new plug-in hybrid vehicle models was 121,000 yuan, with a reduction of 13,000 yuan, and a reduction intensity of 10%. Overall, the intensity of price reductions for plug-in hybrid vehicles is relatively mild, but prices are gradually forming at a level similar to leading companies, making this reduction trend inevitable. 3. Fuel vehicle price reduction analysis In January and February 2025, the average price reduction for new fuel vehicle models was 162,000 yuan, with a reduction of 20,000 yuan, and a reduction intensity of 11%. As some high-end models start to reduce prices, the overall reduction in price is relatively significant. 4. Hybrid vehicle price reduction analysis In January and February 2025, the average price reduction for new hybrid vehicle models was 294,000 yuan, with a reduction of 20,000 yuan, and a reduction intensity of 6%. As some high-end models begin to reduce prices, the overall reduction in price is relatively significant. 5. Extended range vehicle price reduction analysis In January and February 2025, the average price reduction for new extended range vehicle models was 179,000 yuan, with a reduction of 16,500 yuan, and a reduction intensity of 8%. Due to small-scale price adjustments for some mid-to-high-end models, the overall reduction in price is relatively moderate.