Chenglian Branch Cui Dongshu: With the combination of national subsidies and declining slopes, coupled with upgraded consumption, China's automotive consumption will enter a high-end cycle by 2026.

On January 20, Cui Dongshu, the secretary general of the Passenger Car Association, stated in an article that with the adjustment of the new energy vehicle purchase tax incentive policy set to take effect in 2026, combined with policies such as "scrappage schemes" guiding consumer upgrades, the direction of competition in the Chinese car market is changing. The policy incentive direction is shifting from "universal subsidies" to "encouraging technological upgrades and quality consumption", encouraging consumers to upgrade their consumption in order to maximize subsidies, and also guiding the Chinese car market to shift from "price competition" to "value competition" in 2026. Cui Dongshu believes that the key feature of the 2026 car market can be summarized as the diminishing effectiveness of "price wars" and the emergence of "value wars" as the main trend. The key to competition among car companies has shifted from "who is cheaper" to "who can offer more solid technology, higher-level configurations, and more sustainable experiences within the mainstream price range." This profound shift demonstrated at the beginning of 2026 signifies that the industry is entering a new competitive cycle centered around long-term user value.