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China’s domestic auto market is experiencing a period of unprecedented change in 2026. Following years of growth and milestones in 2025, the industry is now facing a significant downturn driven by reduced government support and subdued consumer confidence. Industry experts suggest that while the market may witness a gradual recovery later this year, the challenges ahead signal a fundamental shift for the sector. Factors such as a slowing economy, changing demographics, and intense domestic competition are reshaping the industry landscape. One critical aspect currently under scrutiny is China’s increasing reliance on overseas exports amid geopolitical tensions and evolving trade dynamics….
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