2026 Is Likely Transition Period for China's Auto Industry -- Market Talk

Dow Jones05-18

0341 GMT - This year could be a transition period for China's auto industry with the market turning its focus on quality instead of quantity for growth, Nomura analysts write in a note. Sequential recovery in domestic demand in 2H driven by the rollout of new technology and models is likely, they say. The new phase of the national consumption subsidies and normalization of demand after a depressed 1H sales trend may support overall sales, they say. Chinese automakers with strong technology reserves and that are actively exploring global markets will likely outperform peers. BYD remains Nomura's top pick given its strong overseas expansion and model pipelines with ultra-fast charging capabilities, they say.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

May 17, 2026 23:41 ET (03:41 GMT)

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