Cui Dongshu: In April, the passenger vehicle market's focus was on "cool fuel, hot new energy." The historical retail penetration rate of new energy vehicles exceeded 60% for the first time.

Secretary-General of the China Passenger Car Association, Cui Dongshu, stated in a document that by 2025, the wholesale growth rate of national passenger cars is expected to be 9%, with the wholesale growth rate of new energy passenger cars reaching 25%, successfully achieving the growth expectations of the "14th Five-Year Plan" for the new energy vehicle market. With the expiration of the new energy vehicle purchase tax exemption policy at the end of the year, the new energy vehicle market is expected to stagnate in 2026. However, the implementation of the replacement of old vehicles with new policies in most provinces and cities is slow, resulting in low demand from mid-to-low-end consumers and a significant divergence in market trends. Characteristics of the passenger car market in April 2026: 1. Total volume under pressure, significant structural differentiation, with "cooling of fuel, hot new energy" becoming the main focus. The core reason for the domestic retail decline is the collapse of fuel, with the penetration rate of new energy retail reaching 61.4% (breaking 60% for the first time in history) and the electrification replacement speed exceeding expectations. 2. The market share of independent brands continues to strengthen, with successful transformation of traditional independent brands and slow progress of joint venture brand electrification, solidifying the pattern of "independent brand dominance". 3. Explosive growth in exports, with new energy accounting for 52.7% (breaking 50% for the first time in history), driven by the dual wheels of "new energy + independent brand", with "going global" becoming the core growth engine. 4. Obvious characteristics of passive destocking, with channel inventory declining rapidly, all listed dealers suffering losses, and the pressure on dealer survival continuing to increase. 5. Dramatic changes in the internal structure of new energy vehicles, with a surge in B-class electric vehicles and pressure on economy-class electric vehicles, facing challenges at the lower end while striving towards the higher end. 6. Decrease in new car contribution: In April 2026, the sales of newly listed cars reached 108,400 units, accounting for 5.1% of the total, compared to 130,000 units in April 2025, with sales of some classic models maintaining a stable leading position. In April 2026, passenger car retail sales decreased by 21%, much lower than the 4% decline in wholesale sales, forming an internal cooling and external heating pattern. Due to the impact of high oil prices and the suspension of subsidies leading to a decline in retail sales, retail sales of A-segment sedans and A00-segment sedans were relatively low in April, while A0-segment sedans and high-end models became the main force in April retail sales, with strong performance in the high-end segment of SUVs, and a rebound in sales of A0-segment sedans. Trends in the economy-type passenger car market: 1. Performance of A00-segment sedans In April 2026, the wholesale sales of A00-segment sedans reached 69,200 units, accounting for 9.69% of the wholesale market, a 54% decrease compared to the same period last year, with a 7% increase in wholesales compared to the previous month; retail sales in April 2026 decreased by 56% compared to the same period last year, with a 2% decrease compared to the previous month. From January to April 2026, the wholesale quantity was 221,300 units, with a cumulative decrease of 57% in wholesale sales by manufacturers; domestic retail sales from January to April 2026 were 138,600 units, with a cumulative decrease of 67% in retail sales. 2. Trends in the main models of A0-segment sedans In April 2026, the wholesale sales of A0-segment sedans reached 158,000 units, accounting for 22.11% of the wholesale market, a 19% increase compared to the same period last year, with a 6% increase compared to the previous month; retail sales in April 2026 increased by 22% compared to the same period last year, with a 3% decrease compared to the previous month. From January to April 2026, the wholesale quantity was 541,900 units, with a cumulative increase of 25% in wholesale sales by manufacturers; domestic retail sales from January to April 2026 were 308,200 units, with a cumulative increase of 14% in retail sales.