HONG KONG (S&P Global Ratings) May 15, 2025--China's carmakers have overcome a lot and will now have to overcome a little more. U.S. tariffs will add uncertainty to a sector already managing overcapacity, price wars, and a challenging EV transition. We believe pressures will weigh on the cash flows of rated entities over the next 12-24 months. This is according to a report we published today, titled "U.S. Tariffs Place Another Straw On The Back Of China Carmakers." We expect China's domestic light vehicle sales to grow by a moderate 0%-3% in 2025, and then decline 1%-3% in 2026. "Our China sales projection factors in the sector's solid performance in the year to date, supported by government stimulus. The forecast
