Unexpected Rebound in Fuel Vehicle Sales; Fitch Expects Slowdown in New Energy Vehicle Growth Next Year

The global automotive industry and policymakers widely anticipated that the market share of traditional fuel vehicles would continue to shrink in China, the world's largest electric vehicle market. However, the latest data paints a completely different picture.

According to data released by the China Association of Automobile Manufacturers, domestic sales of traditional fuel vehicles reached 1 million units in September this year, marking the fourth consecutive month of year-on-year growth. From January to September, cumulative sales of traditional fuel vehicles exceeded 8 million units, representing a counter-trend increase of 1.7% compared to the same period last year.

This seemingly modest yet significant growth indicates that the influence of traditional powertrain models persists. Just last year, China's fuel vehicle sales experienced a sharp decline of nearly 18% year-on-year, casting a pall of pessimism over automotive headquarters in Detroit, Stuttgart, and Tokyo.

Yang Jing, Director of Corporate Ratings for Asia-Pacific at Fitch Ratings, stated in an interview with Jiemian News that the product structure of China's fuel vehicle market is shifting upward. Demand for entry-level models is being replaced by plug-in hybrid products, causing fuel vehicles to gradually concentrate in the mid-to-high-end price segments. The industry's trend toward premiumization is driving concentrated growth in market share for leading companies, while marginal fuel vehicle brands are facing accelerated elimination.