Automakers are suffering greatly as a result of China’s escalating price war on automobiles. For the majority of manufacturers, steep discounts haven’t been able to stop a decline in sales, and profits have suffered.
Revenue and profit margins are being squeezed, according to a Bloomberg review of figures from more than a dozen Chinese automakers during the first quarter. With a few notable exceptions, like BYD Co. and Changan Automobile Group Co., the majority of the big Chinese automakers experienced a loss in profits, which is the worst performance since the start of 2020, when the industry was severely impacted by the pandemic.
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