Strong adoption of electric vehicles (EVs) and hybrids, together with rising imports of competitively priced Chinese vehicles, drove robust sales growth in 1H2026 but also intensified price competition. Financing access remained sound, although higher borrowing costs and a larger volume of bonds maturing in 2H2026 will increase refinancing needs. Despite revenue and EBITDA growth, weaker core operating margins and slower inventory turnover weighed on operating cash flow, which was negative for most listed automotive firms. These pressures, together with intensifying competition, will continue to constrain credit profiles in 2H2026.
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