By mid-January, nearly all of China’s top 10 carmakers by 2025 sales had rolled out early-year promotions, intensifying discounts to shore up market share, Caixin Global reported.
In early January, BMW cut prices on more than 30 models in China; major domestic players—including SAIC Motor, GAC Group, Chery Automobile, and Leapmotor Technology—rolled out subsidies, interest-free loans, and other incentives.
Some automakers, like BYD, opted to add features to plug-in hybrids without raising prices, while Tesla (TSLA) extended zero-interest financing to five years and added a seven-year low-interest plan.
Chinese carmakers have always been struggling with fierce price wars since the domestic industry has emerged. One BYD manager last year warned of a ‘blood bath’ (their word) if this continues.
Many Chinese companies went bankrupt over the years, and literally all others are fighting for their survival. This is a major reason why they seek relief in exports. As in many other industries, China’s automobile sector depends heavily on gaining export markets.