NEW YORK – August 27, 2026 – More than half of U.S. consumers would consider buying a China-made vehicle – including more than three-quarters of consumers under age 35 – according to Dave Cantin Group’s (DCG) 2026 mid-year Market Outlook Report (MOR).
Dave Cantin Group (DCG) is a leading automotive retail M&A advisory firm. DCG’s Mid-Year Market Outlook Report, produced in partnership with The Martec Group, is based on consumer and dealer surveys, along with interviews with dealers, executives and industry experts.
Among the report’s key findings:
U.S. consumers are surprisingly open to China-made vehicles: 51% would consider buying one, rising to 77% of consumers under age 35. Nearly 30% of those open to a China-made vehicle would consider one priced at $45,000 or more.
Affordability is reshaping OEM product strategy: EV demand has fallen sharply as incentives disappear, hybrids are gaining momentum, and increasingly comparable vehicle quality across brands is shifting competition toward product and price.
Dealership M&A is accelerating and becoming more strategic: 64% of dealers expect M&A activity to increase over the next 12 months, as leading groups increasingly buy and sell dealerships to actively shape their franchise portfolios.
Consumers are gaining leverage: AI is giving vehicle shoppers powerful new research and comparison tools, while dealers say they have yet to develop a comparable technological response.
Openness to China-made vehicles varies significantly by age: 77% of consumers under 35 would consider one, compared with 59% of those ages 35–54 and 36% of consumers 55 and older. And the opportunity isn't limited to the bottom of the market: nearly 30% of consumers willing to consider a China-made vehicle said they would consider one priced at $45,000 or more.
“The industry may be underestimating the pressure the U.S. government will be under to make vehicles more affordable,” Dave Cantin Group President Brian Gordon said. “Consumer willingness to purchase China-made vehicles could combine with persistent affordability challenges to entice politicians into changing their stance on a U.S. entry.”
The findings come as Chinese automakers rapidly gain share globally outside the United States. Chinese brands have reached roughly 10% market share in Europe and Mexico in fewer than five years, as compared with the nearly 20 years it took for Japanese and Korean automakers to achieve comparable penetration.
The Market Outlook Report mid-year update finds the China story is already affecting U.S. dealers, even without Chinese brands being sold in the country. Established global automakers have rapidly lost share and volume in China, compounding challenges created by the EV unwind and tariffs, together putting massive pressure on their global business models and forcing tough decisions about product, production and growth strategies, with immediate consequences for U.S. dealers.
Affordability Puts Product Back at the Center
The same affordability pressures are reshaping product strategies across established automakers. With average new-vehicle transaction prices around $50,000 and monthly payments sharply higher than five years ago, consumers are increasingly forcing manufacturers to align product with what buyers can afford.
The shift is particularly visible in EVs. One GM dealer interviewed for the report said monthly EV sales fell from a couple hundred to roughly a dozen after federal incentives disappeared. Meanwhile, monthly lease payments increased from about $240 to roughly $800. And hybrids are gaining momentum as manufacturers recalibrate their powertrain strategies.
The research also finds mainstream vehicle quality has reached rough parity across many brands, shifting competition increasingly toward product appeal and price rather than historical perceptions of reliability.
“The product is what wins at retail,” one dealer executive told Market Outlook Report researchers.
“Increasing quality parity, affordability and declining consumer resistance to vehicle country-of-origin mean compelling product at the right price can disrupt the market faster than ever before,” Gordon said.
Auto Dealership M&A Accelerates, Becomes More Strategic
Dealership consolidation is expected to accelerate. Sixty-four percent of dealers surveyed expect M&A activity to increase over the next 12 months, while only 12% expect it to decline.
The DCG Market Outlook Report finds that leading dealership groups are approaching M&A differently than they did in the past as they manage their businesses as portfolios: acquiring desirable franchises, selling weaker assets, diversifying brand exposure and pursuing off-market dealerships that fit the portfolios they’re shaping.
“Buyers also are changing how they value dealerships,” DCG CEO Dave Cantin said. “Rather than focusing primarily on a seller’s historical earnings multiple, sophisticated buyers increasingly evaluate what the dealership’s future performance would look like under their own operating model.”
One dealer and M&A attorney interviewed for the report said: “There's no longer a frenzy to get the deal. It's now a frenzy to get the right deal.”
Consumers Gain More Leverage
Underlying many of the report's findings is a broader shift of power toward consumers, as forecast by earlier DCG Market Outlook Reports.
AI is accelerating that change. Among consumers who have used AI to research a vehicle, 59% rate it a six or seven on a seven-point scale for its importance in their purchase decisions. More than half of consumers under 55 have used or plan to use AI for vehicle research.
Dealers interviewed for the report expect AI shopping agents eventually to compare vehicles, pricing and trade-in offers across multiple dealerships simultaneously, increasing pressure on dealers to respond quickly, price accurately and operate transparently.
“Product, affordability, consumer choice, and convenience increasingly determine who wins,” Gordon said. “Manufacturers and dealers that align their businesses with what consumers actually want and can afford will be best positioned for the next phase of automotive retail.”
About Dave Cantin Group
Dave Cantin Group is a leading automotive M&A advisory firm specializing in acquisitions, divestitures, platform management, business evaluations, and other corporate development services. The new retail reality requires automotive dealers to seek DCG’s collective best thinking, deep experience and extensive industry relationships to effectively leverage M&A as a core business strategy. Clients choose DCG because the firm is a trusted advisor focusing on long-term relationships, investing in data and research, and engaging its entire team on every client project. Clients benefit from DCG's industry-leading market intelligence – its Market Outlook Report – and JumpIQ, DCG's proprietary AI-enabled platform delivering unprecedented visibility into automotive retail. The firm's nonprofit initiative, DCG Giving, funds child and adolescent cancer research and treatment across the United States and supports other charitable causes important to the automotive retail community. To learn more, visit davecantingroup.com.
About The Martec Group
The Martec Group is a global market research and consulting firm. As experienced market researchers, diligence providers, and consultants, the firm delivers unsurpassed market research reports and insights to power the toughest decisions in business.
Martec works in a wide variety of industries including Automotive, Food & Beverage, Healthcare, Private Equity, and Specialty Chemicals. Having completed thousands of projects in B2B, B2C, and B2B2C markets throughout the company’s tenure, Martec can talk from day one about industry insights.
With a portfolio of custom intelligence solutions that has been built over 35+ years, Martec delivers actionable insights for clients worldwide. Clients appreciate Martec’s customized, consultative approach to meet their needs on each project. To learn more, visit martecgroup.com.
Media Contact:
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Dave Cantin Group
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