Bernstein flags slow momentum risk for China auto market
Bernstein analysts say China’s auto market may keep slow momentum as government subsidies are reduced and EVs face a 5% purchase tax hike, after prior demand was pulled forward into 2024-2025.
Bernstein analysts wrote in a note that China’s auto market is likely to keep seeing slow momentum as government subsidies are reduced and a 5% purchase tax hike on EVs takes effect. The analysts said the outlook also reflects strong demand that had been pulled forward into 2024 and 2025, along with a high comparison base, even as macro headwinds remain.