On September 14, Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), published an article, noting that retail sales of passenger vehicles are projected to plummet by 23% in August 2026, while wholesale sales will see a 5% decrease. This indicates that retail growth is significantly trailing behind wholesale growth, giving rise to a market scenario characterized by "a tepid domestic market and a booming external market." At present, the domestic automotive market is grappling with fierce competition over existing inventories, a surge in export demand, and intensified industry differentiation. The new energy vehicle (NEV) market is transitioning away from indiscriminate growth, revealing a stark polarization between the booming high-end electric vehicle segment and the struggling micro electric vehicle sector. Notably, the county and township markets, along with entry-level models, have experienced substantial declines. Concurrently, the "new model effect," which previously drove market growth, has substantially diminished, exerting increased pressure on the distribution channel. Passive destocking within the industry has accelerated, with dealers generally incurring losses and operational risks on the rise. Overall, the auto market's stronger month-on-month performance in August merely represents a structural recovery, with electrification advancements and overseas exports emerging as the primary drivers of long-term industry growth. In terms of structural breakdown, large-sized, high-end A0, B, and C-class SUVs have witnessed significant growth in wholesale sales, while demand for traditional sedans and micro/small MPVs has waned, signaling a consumer shift towards mid-to-large-sized SUVs. This divergence between wholesale and retail trends has further heightened pressure on channel inventory.