Innovation and exports will winnow China’s car industry in 2026

China’s car industry is expected to stagnate this year as it tries to catch its breath after years of growth. New energy vehicles (NEVs) are likely to continue increasing their market share but growth will be much lower than in recent years, with the penetration rate reaching around 60 per cent. “Involution” was the major theme last year, and despite efforts by the government and manufacturers, the situation is unlikely to improve until the second half of the year, due to a tepid economy and a...