Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), noted in a post that promotional pressure on conventional gasoline vehicles and hybrids in 2025 is relatively low, while competition in the new energy vehicle (NEV) sector remains intense. This year, promotional activity for plug-in hybrids has fluctuated significantly, with a year-on-year increase of 3.9 percentage points in December but a month-on-month decrease of 0.4 percentage points; Overall, promotional activity for range-extended models increased by approximately 4.5 percentage points compared to December 2024. For pure electric vehicles, promotional activity increased by about 1.1 percentage points compared to December 2024 and by about 0.4 percentage points compared to the previous month. The national trade-in policy has been highly effective, driving market sales growth and significantly reducing price competition. As a result, operational pressures in the industry have eased, with the automotive sector’s profit margin rebounding to a low-to-mid range of 4.4% for January–November. This reflects the positive impact of industry expansion and the stabilization of promotional pricing. (Cui Dongshu)