Raging price war poses survival threat for China’s automakers

THE raging price war poses survival challenges to automakers in China as it accelerates a major industry shift toward electrification and automated driving, experts said.

Tesla ignited the war late last year in the electric vehicle (EV) sphere, spurring rival BYD to follow suit. The wave of price cutting has escalated since March as it spread across the industry and dragged in makers of conventional fossil fuel cars.

Dozens of automakers, from domestic EV upstarts to joint venture brands, have slashed prices over the past few months in ways that have rarely been seen before, offering deep discounts that amount to as much as 40 per cent off list prices to secure market share amid slowing sales.