The Chinese market EV eaten their own tail

• China builds more EV than can be sold and leaves Ping cars and prices reduced.
• The combination of price war, “used cars with zero kilometers” and lots full of new cars that no one wants to buy, shows a broken system.
• Many car manufacturers in China could die, but supported government subsidies that require production quotas.

While the Chinese industry EV looks like an unstoppable and constantly growing Juggernaut, it is deep from the bubbling under the surface. Certainly, car cars in the country build a colossal number of very good and very well affordable vehicles that win over buyers abroad. However, these cars are also filled with sellers because of excessive production that far exceeds real demand.

In China, there is certainly a appetite for EV, but now it is almost enough to find houses for all cars produced. As a result, some local manufacturers bleed and test various shady tactics to get rid of their unsold inventory, such as the sale of used cars abroad zero kilometers or just let them rot in a mass car gray ,,,, Reuters Emphasized in a report on a deep dive of the result.

Outlet found that you can buy a brand new local vehicle at a 50% discount, or a car that FAW produced for 60% of its invested price list. There is a company called ZCAR, which buys these unsold cars in bulk and sells them for huge discounts. You can even buy a brand new, heavily discounted cars in the sale of Tiktok fire in China, remarks Outlet.

Chinese companies have advantageous bins prices are a symptom of much greater problem: after years of robust government subdios and ambitious production goals now, Chinese companies now have the ability to chrise double 27.5 million cars produced in 2024, according to Cons cited by the outlet.

This and the competitive environment that is created has led to a brutal, years of long price cylinders among manufacturers. Analysts project that only a fraction of about 130 plug-in vehicle manufacturers from China from China will survive by the next decade. Reuters Says.

Chinese officials are reluctant because the signs die in mass but ascent Explains. Therefore, the government continues to subsidize production (which is considered to be unfair competition abroad, and therefore a sturdy import dies, which is facing Chinese EV in many places). It would mean lost work and would cause the Earth to look bad on a global internship where it seeks to portray as a production and technological powerhouse ev. It’s exactly that, although its EV industry may not be sure as most people think.

It seems that even the greatest names such as residents are also fluctuating and reportedly resorted to the fact that people who negatively talk about the brand speak of court. The residence has reduced the sale of sales to 2025 out of 5.5 million vehicles to 4.6 million, and this can be optimistic. Reuters In his very extensive investigation, it was stated that he found 5,100 auction announcements of brand new vehicles in Alibaba, all of them were registered and insured, so Therai Estistielly counted as sold and supplied vehicles.

It expects Chinese car manufacturers to spend for the first time more abroad for the first time than it is at home. Several large brands of cars from China set up production facilities in places like Europe, hoping to build and sell cars and at the same time avoid tariffs. The BYD, the largest Chinese manufacturer EV, recently announced that its first European car will be the advantage of dolphin surfing. At the end of this year it goes to production in Hungary.

This idea of ​​a meeting of often unrealistically large governmental quotas, regardless of whether or not there is a market for all products that make sounds too well known. Although China is trying to portray as a special kind of communist capitalist hybrid that works so well that it has successful in the dominance of the global market, this practitioner has learned with capitalism. It is also long -term, bad for the economy and poor for the environment.

Officials may have realized that they have realized the extent of the problem and are now calling for the end of price wars and excessive investments. And yet, as Reuters The news, only recently in June One province, is offered over time hundreds of millions of dollars for cars, who could eventually strengthen the annual EV and hybrid production in the region by $ 1.5 million.

If things are really as bad as Reuters He says, then he has to give something – and soon.