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On May 29, 2025, the worker checks the finished vehicle on the production line of the Zeekr Zeekr electric car manufacturer.
Kevin Freyer | Getty Images | Gets the image
Beijing-Passion for the intensification of the War in Chinese electric cars, its main leaders were concerned with high-profile calls to stop excessive competition known as “Neijuan” or involution.
While the fashionable word took on different meanings in China to mean the race to the bottom, the term was mentioned in the annual report on the work of Chinese Prime Minister Lee Quen in March. The meeting regulator last month also called for “comprehensively fix “wheelchair” competition“
Earlier this week, the top executives of several Chinese manufacturers were summoned to Beijing for “self -regulation”, Bloomberg report.
However, Galina’s players and analysts predicted that competition will only increase.
“Some automakers have taken the initiative to launch significant price declines, and many companies have gone by example, causing a new round “The Panic War, Panic, The Chinese car manufacturers association said on Saturday that CNBC was translated on Saturday.
The body associated with the government did shots at EV Giant Bakethat caused the last round of discounts on May 23, including More than 30% price decline on one of his car models.
The “destroyed” price war “strengthens the angry competition”, – the association said, warning of further pressure on the income and the risks of consumer safety. He urged companies to perform honest competition and not monopolize the market and “dump” the prices below for production.
“” Price -Voyny “has no winners, and even more so in the future” that the Daily People’s Daily, the official newspaper of the ruling Communist Party of China, then said in the article, in the article, Referring to the Ministry of Industry and Information Technology. This is in accordance with the translation of the Chinese CNBC.
The ministry will increase the regulation of unproductive competition and cooperate with other agencies to comply with laws that contribute to fair competition, the statement said.
The ministry did not immediately respond to a comment request. Byd has sent CNBC to a commentary on China’s state media, in which the automaker stated that he firmly supported the calling association for fair competition and creation of a healthy market.
Involution or evolution?
Analysts have noted that the latest Byd marks actually formalize the discounts that consumers most likely received earlier as part of the subsidy program in China, which is aimed at improving consumption.
Despite almost 30% of the market share, BYD also faces competitive pressure, Nomura’s analysts said on Monday.
Auto -maker who considered Warren Buffett early investors, reports Sales growth by 14% Last month, 19% slowed down in April compared to last year.
“Given the current situation with the Chinese car market, we believe that the most intense competitive phase is yet to come until we see a significant consolidation of the market in the future,” Nomura’s analysts said.
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Despite the rhetoric, much can be done in connection with market competition, said Zhong Shi last week, analyst at China Automobile’s car dealers. He added that other countries are also watching intensive competition in the Chinese car market and what it could mean to their local automotive industries.
The average price of a car exported from China has decreased since 2023, changing the previously upward trend, according to data published on social media Secretary General Cui Dongshu.
For sale in China in Germany, the average export price for the vehicle decreased to $ 21,000 as of this year, which decreased compared to $ 30,000 in 2023, showed data. In Mexico, the main place for the export of Chinese vehicles was an exception, and the average price rose to $ 13,000, which is $ 12,000 two years ago.
In China, the average retail price has Fell approximately 19% The last two years before about 165,000 yuan ($ 22,900), according to Nomura, referring to the branch data of the Institute of Studies.
There are other signals that the tide in the electric cars created an excess.
Appeared “amazing phenomenon” cars sold in the elderly with zero run Interview with Sina Finance It was held in Mandarin on May 23. He added that about 3000 to 4,000 sellers on Chinese used car platforms sold such cars.
Cars were registered as sales or supplies for automakers, just sell on the Secondhand market almost immediately, which overstated sales. But it created “too much chaos”, which made Wei call for better regulation in the field.
Just a “snack”
Chinese fast -growing vehicles market only has noticed several price declines over the past two years.
The price war still reaches its peak, and “competition will become more intensive in the next five years,” EV Startup CEO he is xiaoopen said Chinese media last weekWhich company checked CNBC.
“It’s just a” snack “of what is ahead,” he added. He said he would fight for technology and expand outside China in the rest of the world instead.
The startup focused on making its sales department and delivered more than 30,000 cars a month over the last seven months. Last week, XPENG released the maximum version of its Mona 03 by 129 800 ($ 18,020), almost 17% cheaper than when a low price was detected in August.
Like most startup electric cars, XPENG reported the losses associated with the first quarter about 90 million dollars. Niowhich focused on more premium vehicles on Tuesday reported Loss of $ 949.6 million In the first quarter.
However, the Chinese company smartphones Xiaomi On Tuesday, he predicted that his electric car would make a profit in the second half of the year, confirmed by CNBC’s press. Last year, the company came to the EV market with its Sedan SU7 price is cheaper than Model 3 Tesla and is expected to accept the model y with YU7 SUV this summer.
