CPCA secretary-general Cui Dongshu said current weakness in China’s passenger vehicle market is a phase driven by short-term policy disruption, cyclical swings and institutional constraints, not a peak in vehicle penetration. He said the market remains in a mid-stage of adoption, with large first-time buyer potential in lower-tier counties and a cost revolution from the new-energy vehicle supply chain, leaving substantial medium-to-long-term upside for auto demand.