On December 8, the CPCA Branch announced that, owing to the significant subsidies provided for trading in old vehicles for new ones, the volume of automobile trade-ins is projected to surpass RMB 180 billion in 2025. In the meantime, the 10% purchase tax exemption for new energy vehicles is anticipated to drive sales up by 22% compared to 2024. This implies that the purchase tax, amounting to over RMB 200 billion, which corresponds to new energy vehicle sales exceeding RMB 2 trillion, will be waived. Bolstered by tax exemptions and subsidy policies totaling nearly RMB 400 billion, the auto market is set to experience growth beyond expectations in 2025. Nevertheless, in 2026, the reduction of the purchase tax exemption for new energy vehicles to a mere 5% will lead to a decline of over RMB 100 billion in tax exemptions and incentives, thereby exerting immense pressure on the auto market's growth trajectory. Taking into account the auspicious commencement of the '15th Five-Year Plan,' the auto market's development at the close of 2025 should prioritize stability and refrain from over-expending the growth potential for the following year.