China's automakers expected to compete "extremely fiercely" this year

China’s auto market will have an “extremely fierce” price war this year, as the competition between top players continues, said the China Passenger Car Association.

CPCA secretary-general Cui Dongshu said the scale of the new energy vehicle market would post explosive growth and the cost of making each vehicle significantly dropped.

Moreover, the leading players are still fighting against each other for more market shares, Cui noted.

Thus, Cui predicts the price wars will extend to this year and will be “extremely fierce”.

Notably, BYD (1211) and SAIC Maxus asked some suppliers to reduce their prices by 10 percent to embrace the competitive market this year, according to reports in November 2024.

(Themis Qi)