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Mia Nulimaimaiti

As a domestic price war has brought vehicle prices so low embattled dealers have urged the government to intervene, customs data shows Chinese carmakers are also slashing prices in overseas markets to stay competitive.
While China’s exports in August were at their highest in 2024, prices for electric vehicles (EVs) have been steadily declining.
The export value of Chinese EVs rose year on year last month, but the 3.73 per cent registered was below the 10 per cent growth rate observed in the number of units exported.
This translates to an 5.74 per cent year-on-year decline in EV prices, and an 11.67 per cent drop for the first eight months. The trend is particularly evident in the European Union, where a hotly contested trade investigation over imported EVs from China continues to play out.
Although China’s EV export prices to the EU saw a slight year-on-year increase in August due to provisional tariffs, overall prices dropped by 10.56 per cent compared to the previous month.
At home, the downward spiral is even more pronounced.


Chinese dealers have lost US$19.55 billion in the first eight months of the year, largely due to deep discounts offered in a desperate effort to stimulate sales, the China Automobile Dealers Association (CADA) said on Monday.
“Dealers are facing significant losses in new car sales, with widespread cash flow deficits and heightened risks of capital chain ruptures, making it increasingly difficult for them to survive,” CADA said in a post on its WeChat account.
The association attributed the downturn to weak consumer demand and inventory backlogs, which have forced dealers to sell at a loss to ease financial pressures.
“Existing liquidity has been squeezed to the limit,” it added.
In August, CADA said, the overall discount rate for new cars and light trucks reached 17.4 per cent, a slight easing from the 19 per cent recorded in the previous month.
The association has urged Beijing to promptly implement relief measures to head off systemic risks in the sector, including encouraging financial institutions to enhance funding and loan support for showrooms.


In an unwelcome omen for the world’s largest vehicle market, Grand Automotive Services Group – one of the country’s biggest car dealers – was removed from the Shanghai Stock Exchange effective August 28, after shares traded below their par value for 20 consecutive days.


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Rounds of price cuts by China’s car dealers are being mirrored overseas, as manufacturers take losses to gain a foothold in global markets


Rounds of price cuts by China’s car dealers are being mirrored overseas, as manufacturers take losses to gain a foothold in global markets.
