In China, fears grow from the financial crisis of EV against the backdrop of war pricing

On the used cars in Beijing Seller Ma Hi stated that he is afraid of China Industry electric vehicles is in the race to the bottom.

EV Makers led by the country’s market leader Bakeengaged Bruising priced warInhibits profits for brands as well as sellers such as MA.

“We all losing money last year,” said Ma about her colleagues of used cars on the market. “There are too many companies that make too many new energy cars.”

Chinese trading partners are often accused of country By the behavior of the world market With cheap Chinese EVS. These days are similar charges flying In Chinacauses concern about financial stress in the field.

For example, the official document of the Communist Party “People’s”, born a comment on Monday called “Price War” in the automotive industry does not lead or have a future “.

The “destroyed” price wars is squeezed throughout the chain, which affects the entire ecosystem and risking revenue revenue for workers, “the document reads. “Long -term, this” race to the lower “competition is impossible”.

Byd attracts the most fire after it announced Reduced prices At the end of May for many of their models. Some discounts are as cool as 34%. The cheapest car, Mini Hatchback Seagull, now costs only about $ 700, which will decline approximately $ 10,000.

The intense price forced the high-profile car executives to signal-with the head of the large engine on the wall, which calls the branch “unhealthy”.

In an interview with Chinese news Sina Finance On May 23, Chairman Wei Jianjun parallel with the Moribund Chinese property sector and it is already a non -existent children’s poster, Evergrande developer.

“The crisis similar to the ever-grades already exists in the automotive industry,” he said. “It just didn’t break out yet.”

The government -supported group also called on the companies not to “drop” vehicles below production. In its statement, the Chinese Association of Car Manufacturers is veiled in byd.

“Some automakers have taken the initiative in launching a significant price decline, and many companies went by example, causing a new pricing round,” the group said.

Baid dismissed the Wei comment as anxious and stated that he believed in honest competition in response to criticism.

As a sign of further tension, sellers on the used car in Beijing reported CNBC about the phenomenon known as the “zero used used cars”, which is designed to help car manufacturers and dealers inflate sales. This happens when the machines are registered and covered, and then marked as sold but never driving.

Ma said he was going through where he is fiercely competition. He said CNBC that he sees the impact of fierce competition on consumers who are already ashamed of the cost of the economy.

“With such a decline in prices, a lot of buyers can wait,” he said.