Despite grappling with the challenges posed by payment term commitments and the rising 'anti-involution' sentiment, China's auto market has still managed to reach unprecedented production and sales levels in 2025. According to data released by the China Association of Automobile Manufacturers (CAAM), in the first 11 months of the previous year, China's automobile production soared to 31.231 million units, while sales climbed to 31.127 million units, marking a year-on-year increase of over 11% for both metrics. This remarkable performance underscores the fact that, propelled by policy incentives such as 'trade-in for new purchases' and the exemption of purchase taxes on new energy vehicles, the latent potential for automobile consumption is being continuously unlocked, and the market is demonstrating robust resilience and vitality. Against the backdrop of the industry's new normal, 2026 is likely to emerge as a pivotal year for automakers. Executives from several automotive companies have projected that the domestic auto market will transition into a new cycle characterized by high sales volume but a low growth rate.