G Sachs believes that consolidation in China's automobile OEM industry is unlikely in the near term due to several factors: most OEMs are still operating above cash cost levels, management teams have differing views on sales and profitability, and only one OEM is in a net debt position. Additionally, the bank has revised down its sales forecasts for 2026, reflecting weak domestic demand, while exports are expected to increase significantly. This context leads to a cautious outlook on the industry's consolidation prospects.
