Auto Brands Ramp Up Promotions in Late May, Retail Sales Set to Rebound

In late May, automakers intensified promotional efforts as the sales push window opened, likely driving a rebound in retail sales and narrowing the year-over-year decline compared to early May. Market divergence continues, with new energy vehicles and low-priced entry-level models outperforming traditional internal combustion engine vehicles and mid-to-high-end joint-venture brands. In the short term, policy-driven stimulus and dealer inventory digestion remain key factors influencing market trends, warranting close monitoring of weekly retail data and changes in terminal discounts.