China’s carmakers are reigniting a fraught price war in a bid to reverse a slump in sales.
Faced with swelling inventories, several auto brands announced post-Lunar New Year incentives that reflect “mounting pressure across the industry,” Caixin wrote, with foreign brands like Tesla also joining in on the price cuts.
Car sales in the largest global auto market fell 14% in January year-on-year as government subsidies dried up.
But some brands might be reluctant to partake in another price war given regulatory scrutiny from Beijing aimed at curbing so-called “involution,” a race-to-the-bottom competitive spiral.
Chinese carmakers’ challenges extended to Europe: They have made deep commitments on the continent, but their share of the regional market dipped in January.
