Reported 9 months ago
Amid intensified price wars in the mainland China car market, the profitability of the automotive industry remains at historic lows. With manufacturers facing challenges due to fierce competition and increasing development costs, profit margins are being further squeezed despite slight improvements thanks to expanded production and cost reductions on materials. Numerous car companies, including those in the fuel car sector, have responded with subsidies and price cuts as the Chinese government introduced policies encouraging car replacements with generous subsidies. Despite strong performance from some companies in the mainland's low base production and sales during the first four months of 2024, many enterprises are experiencing significant profit declines and increased survival pressures. However, with stable production and active efforts to stabilize consumer consumption of fuel cars, the overall outlook for the automotive industry in China appears to be cautiously optimistic.
Source: YAHOO