China’s EV Industry in a Tight Spot: Domestic and Global Price Wars Threaten Profit Margins

Chinese EV exporters and sellers are feeling the pinch both domestically and internationally due to an ongoing pricing battle. As car dealers in China continue to slash prices, this trend is being observed globally as car manufacturers are willing to incur losses in order to establish their presence in worldwide markets.

In the midst of a local price battle that has significantly lowered vehicle prices, struggling car dealers are appealing to the government for assistance. Meanwhile, customs data indicates that Chinese auto manufacturers are also reducing prices in foreign markets to maintain their competitiveness.

The value of Chinese electric vehicle exports increased compared to the same period last year. However, the growth rate of 3.73% fell short of the 10% increase seen in the quantity of vehicles exported.

Despite a minor annual rise in the cost of China's EV exports to the EU in August due to temporary tariffs, the overall prices fell by 10.56% compared to the preceding month.