China’s auto market is struggling. Vehicle sales have fallen for 10 straight months, while domestic passenger-car sales declined by more than 20% in the first seven months of 2026. New-energy vehicles (NEVs) accounted for a record nearly 65% of sales in July, but NEV sales have still declined every month this year. Too many vehicles, weak demand, and an ongoing price war are weighing on the industry.
At the same time, humanoid robotics could become a much bigger market. Barclays Research expects the global market to grow from roughly $2 billion to $3 billion today to $200 billion by 2035, describing physical AI as the next major industrial growth wave.
