Senior executives of several Chinese EV makers were summoned to Beijing to “self-regulate”, Bloomberg reported.
“A certain automaker has taken the lead in launching significant price cuts and many companies have followed suit, triggering a new round of ‘price war’ panic,” according to a statement issued by the China Association of Automobile Manufacturers, sighted by CNBC.
The associated warned of further pressure on profit margins and consumer safety risks, and called for companies to abide by fair competition and not monopolise the market or dump stock at prices below production cost, CNBC reported. The association’s comments were aimed at BYD, which rolled out the latest round of discounts in May when one of its models received a price cut of more than 30%.
The minister of industry and information technology of China said that it will increase regulation of non-productive competition, and cooperate with other departments to enforce laws to promote fair competition, according to the report.
Meanwhile, Geely CEO Li Shufu has stated that the automotive industry is facing “serious overcapacity”, and the automaker has decided to not build new manufacturing plants or increasing production from existing facilities, reported Reuters.
The claimed overcapacity come after Chinese carmakers have been involved in a price war, and an instance of Geely’s involvement was when the Geely EX5 became heavily discounted in Thailand earlier this year.
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The speed of Generations Changes,
Is what make BYD today Beastod tech,
With Disus, Dilink, Tank Turn, Driving in water, 1000Volt 1000Watt Battery and 5mins Charging to 400km.
Product need upgrade, old product is outdated.
If this slow down, this is how Nokia Finland and Kodak USA Falls.
Revolutionary property building method and financing system are also the reason what Evergrande and Country Garden are today.
Most important diskaun jer
That’s what buyer care
Trust me
Its “merger” time. Sub par players will have to hang their boots. Malaysia should start looking into policies to ensure these sub-par automobles gets dumbed in our backyard. Minister Loke will have to review and revise the policies from time to time. Be proactive and not reactive!
It’s not Mr Loke’ area, but rather it falls under Miti Tengku Zafrul..
This is trade issue, not transport..
China sells more cars in a year domestically than we have cars on the road in Malaysia. Don’t overestimate the importance of our market
Didn’t Malaysian little pink said mainland cheap is good and RV does not matter?
Thank for support high speed earth cooking. China already claimed solar system’s manufacturer now. Upgraded from world’s manufacturer.
BXX ..
Vendor financing issue, under reporting it’s true debt level..
Pre-registered their cars and sold as second hand and taking profits from government’s subsidies which supposed to be channeled to the consumers. Telling investors that their sales are growing.. Providing high discount on these pre-reg cars with zero mileage..
They still can survive as long as the music has not stop. But once the market is cooled down, that’s where ppl say it’s gonna be an Ever Grande 2.0..
There are many other that uses BYD supply chain,
Eg. Chery, TYT, Xiaomi also use BYD battery.
So if BYD produces cheaper parts for higher quality,
It’s shall be a win for many parties.
I think that’s how Chery, TYT BZ5, Xiaomi SU7 so attractively priced too.
Geely also super outdated dah.
Dear Chinese government. The companies did so because of your incentive payment on EVs.
They even sell pre-reg cars with zero mileage to be entitled for the scheme.
Imagine that. Zero mileage cars with number plates at 40% discounts (look up on youtube), i will take that anyday.
So stop giving incentives that are already doing damage on many car markets incl Malaysia.
tq ccp for making cheap cars available to malaysian customers
if not for ccp we would all be paying exorbitant prices to Europe and japan to get inferior specs
chinese government strategy :
phase 1 – use financial power to flood the market and dominate the industry worldwide
phase 2 – apply hardcore regulations to cull the weak and help the fittest to further beat up their competitors from other markets
phase 3 – the owner of the fittest company must comply with the government’s interest else they will remove him and have someone take over the company