China’s campaign to stamp out a ferocious EV price war seems to be having limited effect, with all of the nation’s top 20 auto brands either keeping discounts intact, deepening them or only slightly reducing them in July https://t.co/06kIb9Fn3A ...

Xiaomi and Xpeng are the next Chinese carmakers to report amid Beijing’s pressure to curb the industry’s long-running price war https://t.co/uTJx3iuhoB ...

Industry Challenges - Only three major Chinese automakers have fulfilled their commitment to pay suppliers within 60 days [1] - The automotive industry faces challenges in maintaining cash flow due to a prolonged price war [1] Business Practices - The industry needs to overhaul business practices [1]

Industry Overview & Policy Response - China's food delivery platforms are experiencing intense voucher promotions, leading to excessive consumption in some cases [1] - The Politburo in China has vowed to curb "irrational price competition" [2] - The government is addressing "involution" (内卷), a phenomenon of vicious competition leading to diminishing returns, now affecting sectors like EVs and e-commerce [2][3] - Officials have summoned EV makers and food delivery giants to self-regulate after price wars with discounts as deep as 34% [4] Economic Impact & Challenges - Cutthroat competition has squeezed industrial profits, with factory deflation lasting three to four months and the Consumer Price Index hovering around zero [5] - The need to reflect the economy and expand domestic consumption is increasingly urgent under the threat of more tariffs [5] - Addressing price wars among private firms is more challenging than capacity cuts in sectors like steel and coal [6] Future Outlook - Anti-involution measures may not work in the short term (4-8 months), but positive sentiment and real economic response are expected in the long run (1-2 years) [7] - China faces the challenge of persuading CEOs to cut production, consumers to accept higher prices, and local officials to avoid competing for new investments in crowded sectors [8] - Supply-side reforms are likely to be gradual to avoid job losses and economic repercussions [8]

China’s pledge to end the car industry’s brutal price war appears to be paying dividends https://t.co/kZmcupzf1N ...

Market Trends - Chinese car exports are surging, reshaping global auto markets [1] - This surge is triggering a price war that extends from Mexico to Malaysia [1]

Core Viewpoint - Nio is positioned to capitalize on the evolving electric vehicle (EV) market in China, with a focus on expanding its new brands and increasing deliveries amid a challenging competitive landscape [1][8]. Group 1: Nio's Strategy and Market Position - Nio has adopted a unique approach by investing heavily in battery swapping stations and launching two sub-brands, Onvo and Firefly, to enhance its delivery capabilities [1]. - The company aims to double its vehicle deliveries from 2024 to approximately 450,000 units, although it is currently slightly behind this target [9]. - Nio's management is also targeting to break even by the end of 2025, which is a significant challenge given the current market conditions [9]. Group 2: Industry Challenges and Opportunities - A study by AlixPartners indicates that only 15 out of 129 EV brands in China are expected to remain financially viable by 2030, with these brands projected to account for about 75% of the market [3][4]. - The Chinese NEV market appears strong, with a 30% increase in sales in June, making up 53% of overall new vehicle sales, and Chinese brands holding 71% of NEV sales [6]. - The intense competition and price wars in the market, driven by government subsidies, have created a challenging environment for maintaining market share and profitability [7]. Group 3: Future Outlook - The current market conditions present an opportunity for Nio to enhance its marketing, incentives, and production efficiencies to drive its new brands forward [10]. - The latter part of 2025 will be crucial in determining Nio's position for potential consolidation in the Chinese EV industry [10].

China’s electric vehicle makers are locked in a spiraling price war. Their suppliers say they are bearing the brunt. https://t.co/cPkBJ5t6Kq ...

Market Performance & Competition - BYD's performance is outstanding in top auto markets like the UK, Germany, Spain and Italy [1] - Tesla is experiencing double-digit sales declines in the French and German markets [1] - BYD is attracting customers from various premium car brands [2] - Competition involves duplicating successful models, leading to potential price wars [12] - The company believes that the price war in China is unsustainable [14] - Europe requires service, trust, and financial capability, making it a more mature market than China [14][15] Product & Technology - BYD offers a wider range of models (7-9) compared to Tesla [3] - The DMI (Do More Intelligent) technology allows for 80-120 kilometers per charge in daily use and 1080 kilometers per tank of gas for long distances [3][5] - BYD's technology enables a "first baby step" for ICE car users to experience electric cars [5] Investment & Strategy - BYD is investing heavily in component production in Europe and potentially battery cells in the long term [6] - Over €3 billion has been invested in Hungary for facilities, including component manufacturing [8] - An additional €700 million has been invested in the India Center in Budapest [8] - The company anticipates billions of dollars in investment in Europe over the next ten years [8] - The company's strategy and technology decisions are not impacted by short-term political factors like tariffs [9] - BYD prioritizes vertical integration, producing 70% of components in-house, minimizing the impact of supply chain disruptions [11]

When it comes to pricing, we've seen this very aggressive price war in China. Yeah. Is that sustainable.No, it's not sustainable. So this this is it's like a it's a kind of a very extreme tough competition. So yeah, it's a BYD if because all our competition drop the price then always like a duplicate what we're doing learning.We become number one. Everybody follow what we do. We're launching this model this today.Two months later our competition will launching similar model bigger but the price will be 10 o ...