In China, fears of EV’s financial crisis grow in the war of pricing war
In a used car market in Beijing, the seller said what it has been afraid of China Electric vehicle industry In a race to the bottom.
EV makers, led by the country’s leader, BydI participated in a Bruising price warCorrect profits for brands, as well as sellers like MA.
“We have all lost money last year,” said what was about his colleagues used by used car vendors in the market. “There are a lot of companies that make a lot of new energy cars.”
Commercial partners in China often accused a country The global market is immersed With cheap Chinese EVS. These days, similar accusations fly Inside ChinaProvoking concerns about financial tension in the industry.
For example, the official Communist Party, The People’s Daily, published a comment on Monday, entitled “The Price War” in the auto industry that does not lead anywhere and has no future.
The paper warned: “The profits of price wars are not disciplined throughout the series, which affects the entire ecosystems and the income risk of workers.” “In the long run, this race down” cannot be tolerated. “
BYD draws most of the fire after announcing it Price discounts In late May to many of its models. Some highly slope discounts such as 34 %. The cheapest car, Seagull Mini Hatchback, now costs about $ 7,700, a decrease from about $ 10,000.
The extensive price war led to the prominent executives of cars to move away from the alarm-the head of the great wall engine called the industry “unhealthy”.
In an interview with the Chinese news port Sina Finance On May 23, Mater Motor Great Wei Jianjun’s president in parallel with the real estate sector in China and his child who is now separated from him, The developer Evergrande.
He said: “There is already a crisis” similar to Evergrande “already in the auto industry. “It has not erupted yet.”
The government -backed industry group also called on companies not to “empty” vehicles without the cost of production. In a statement, the Chinese Automobile Manufacturers Association took a veiled criticism in BYD.
The group said: “A certain car industry company has taken the initiative to launch significant price cuts, and many companies have followed their example, which led to a new round of panic” PRICE WAR “.
BYD rejected the WEI’s comment as confusing and said he believes in a fair competition in response to CAAM’s criticism.
In a sign of more stress, sellers on the car market in Beijing told CNBC about a phenomenon known as “usual distance cars”, which aims to help auto manufacturers and merchants to amplify sales volumes. This happens when the cars are recorded and placed and then distinguished as being sold, but they were not drove at all.
He said that he was concerned about the location of the fierce competition. He told CNBC that he sees the impact of intense competition on consumers who are already ashamed of spending in the lower economy.
“With the low price like this, many buyers may wait,” he said.