According to CNBC, China's auto market is experiencing its slowest sales season in 26 years, with passenger vehicle retail sales down 21.7% year-on-year in the first nine months of 2026, and a projected full-year decline of 22%. Consumer confidence has been hit by an unstable job market and persistent declines in real estate prices, while the government has also scaled back car purchase incentives. Fierce market competition has led to price wars, causing profits in the auto manufacturing industry to shrink by 22.8% year-on-year, prompting Chinese automakers to look towards overseas markets.