China shows signs of tackling a price war that is sacrificing its EV industry
Beijing (AP) – The Chinese government is sufficient to be sufficient when it comes to fierce competition in the country Electric vehicle market.
China’s industrial policy is designed Amazing conversion Become an electric vehicle in the world’s largest automotive market. In doing so, it produced far more manufacturers than it could survive. Now, despite headline sales soaring to new heights, long-studded concerns about oversupply and debilitating price wars are on the forefront.
Market Leader byd This week it announced that sales had grown to 2.1 million cars, up 31% in the first six months of the year. Almost half of them were pure electric vehicles, while the rest were plug-in hybrids, the Hong Kong Stock Exchange application said. The company phased out internal combustion engine vehicles in 2022.
BYD followed suit after several competitors following the thinly veiled criticism when it began new price cuts in late May. The chairman of Great Wall Motors warned that continuing the same trajectory could put the industry under threat.
“As the volume gets bigger, it becomes much more difficult to manage and becomes a bullseye,” said Ray Singh, an independent analyst who follows the industry.
The government is trying to curb what is called “in-ki.” This is a term applied to rat races for young people in China, and to businesses and industries engaged in meaningless competition that leads to nowhere.
BYD has been criticised for using it Its dominant position Some believe that Global Data’s India-based financial risk analyst Mercy Grandi is causing a price war that caused losses across the industry, as he considers it unfair.
In the fourth year of price war, Chinese car manufacturers Looking for overseas For profit. BYD’s overseas sales more than doubled in the first half of this year to 464,000 units. The US and EU worry governments have Tariffs imposed With Chinese-made electric vehicles, they say subsidies give them unfair benefits.
Market leader BYD is under attack
The latest manual match began on May 23rd when BYD cut prices on more than 20 models.
On the same day, Grey Wall Motors chairman Wei Jinjun said he was pessimistic about what he called “sound development” in the EV market. He drew a comparison egregreThe Chinese real estate giant, whose collapse has yet to recover the entire industry.
“The evergrand in the automotive industry already exists, but it hasn’t exploded yet,” he said in a video message posted to social media.