China auto market cools as Taiwan suppliers brace for 2H26 inventory cuts

China's auto market is weakening under high oil prices and shrinking subsidies, dragging down domestic sales while exports keep growing. Taiwanese supply-chain companies are adjusting their product mix ahead of expected inventory cuts in the second half of 2026.

• China auto sales fall on high fuel prices and reduced subsidies
• Chinese vehicle exports continue to grow despite weak domestic demand
• Taiwanese suppliers are adjusting their product mix
• Firms brace for inventory cuts in 2H26