Overview

• Dealers and intermediaries report selling new cars at steep losses, exemplified by Zcar’s Chengdu outlet offering locally made Audis at 50% off and a FAW SUV about 60% below sticker.
• China’s factories can build roughly twice last year’s output of 27.5 million vehicles, according to Gasgoo Automotive Research Institute.
• Industry executives say profits have become elusive for most automakers as a multi-year price war grinds on in the world’s largest car market.
• AlixPartners projects only 15 of 129 EV and hybrid brands in China will remain financially viable by 2030, signaling a major consolidation.
• Officials have recently vowed to curb price wars in EVs and solar, while key agencies did not comment on mounting strains in a sector that supports about one-tenth of GDP.