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China’s auto sector enters its big consolidation phase

Too many brands, shrinking margins and a fierce price war: China’s market may soon lose many of its players.

25 September 2026 1 min read 1 views

China’s auto industry is moving into a tougher selection phase. Volume growth is no longer enough to support every maker, while heavy price competition and investment in EVs are squeezing profits.

The sector is now heading toward mergers, shutdowns and alliances, with the strongest groups likely to absorb weaker brands. The shift will reshape global balances and affect technology, supply chains and pricing.