During our dinner conversation yesterday, we realized we should actually track the issue of overall social sentiment. Essentially, things like traffic reflect what ordinary Chinese people care about.
Starting from 2022, Chinese domestic brands began accounting for 30% market share. The trend of domestic substitution, where local brands replace foreign ones, represents a social sentiment that signifies the progress of China's automotive industry. This trend has been developing in parallel with the growth of China's automobile exports.
Since 2023, the price war has made cars more affordable in the market, which people generally welcome. However, with the less-than-ideal performance of the stock and real estate markets, people have shifted from buying used cars to realizing that their automotive assets are depreciating rapidly. Public attitudes toward the term "price war" have changed. Furthermore, this year people have lower expectations for income growth, making the effects of price wars less noticeable.
Understanding social sentiment is indeed crucial. Analyzing how these emotional shifts impact industry consumption patterns will be our next focus.
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