On January 9th, data unveiled by the CPCA Branch revealed that the domestic retail penetration rate of new energy vehicles (NEVs) soared to 59.1% in December. Spurred by the looming expiration of the policy that exempts NEVs from purchase taxes, the growth rate of NEVs outpaced that of fuel-powered vehicles by a substantial 32.6 percentage points, underscoring a vigorous growth trajectory. The nearly 60% penetration rate of NEVs signals that the market has transitioned into a 'new energy-centric' phase. This shift necessitates prompt policy adaptations to foster the industry's harmonious and high-caliber development. Moreover, from January to December 2025, exports of domestically-owned fuel-powered passenger vehicles amounted to 2.87 million units, marking a 7% year-on-year decline. In contrast, exports of domestically-owned NEVs reached 2.04 million units, representing a remarkable 139% year-on-year surge, with NEVs constituting 49.5% of domestically-owned exports. With the expansion of CKD (Completely Knocked Down) exports, China's passenger vehicle exports are evolving from 'simple car sales' to 'exporting the entire industrial chain', transitioning from high-speed growth in 'quantity' to a significant leap in 'quality'.