Investors are cooling on Chinese EV firms after they reported weak January sales, a downturn that could have ramifications for overseas markets.
Industry leaders BYD and Geely were among the hardest-hit, and some analysts expect the country’s EV sales to keep falling this year as stimulus measures and consumer incentives are phased out.
Beijing raised the quota for the number of EVs that can be sold this year as a way to boost auto sales, Caixin reported.
The sluggish domestic market could lead vehicle exports from China to surge — “yet another reminder to the world’s carmakers that what happens in the country steers the industry everywhere,” The Economist wrote.