0306 GMT - China's auto sales this year are likely to fall 21%, the largest on-year decline in the sector over the past two decades, say Daiwa analysts in a note. Market concerns over the government's replacement subsidy, an increase in China's NEV purchase tax, and slower product launches for 2026 are among the main drivers weighing on sales, they say. The replacement subsidy will likely be phased out and could put downward pressure on overall auto sales in China this year and the next two years, they say. China's auto sales will likely record an annual decline of 2% in 2027 and 2028, they add.