China Economy Impacted as Price War Affects China Manufacturing and Automotive Sector
China's Automotive Industry in Turmoil
As China's economy grapples with challenges, a price war in the automotive sector has led to sharp declines in vehicle prices. Chinese car dealers are appealing for government intervention amid mounting losses.
Declining Prices in EV Exports
Recent customs data reveal that China manufacturing is facing severe competition, with Chinese carmakers lowering prices abroad. The export value of EVs has risen, but prices have diminished.
- Export prices for Chinese EVs fell by 10.56% last month.
- Domestic dealers have incurred US$19.55 billion in losses.
Financial Pressures on Dealers
According to the China Automobile Dealers Association (CADA), dealers are experiencing cash flow difficulties and increased risks of financial instability.
- The average discount rate for new automobile sales is hovering around 17.4%.
- Demand is weak, exacerbating inventory backlog issues.
Government Intervention Needed
The CADA has called on Beijing to institute relief measures to support struggling dealers and provide enhanced loan facilities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.