ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

China's automaker price war threatens profitability: analysts

Slumping car sales, new emission rules result in deep discounts for buyers

Prospective buyers check a Tesla Model 3 car at a showroom of the U.S. electric vehicle maker in Beijing.   © Reuters

The rash of recent price cutting in China's auto market could further squeeze the profitability of manufacturers already struggling with slowing demand, analysts have warned.

"The evolving price war in China's car market ... is likely to extend into the second quarter and erode profitability along the entire automobile value chain in 2023," analysts at Fitch Rating said in a report on Thursday.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more