Price war fears grip China's EV market after woeful July sales figures
Bearish sentiment around China's electric vehicle sector has intensified after three premium carmakers, Xpeng, Nio and Li Auto, reported month-on-month sales declines in July, deepening concerns the market is heading toward another brutal price war. Demand for smart cars has weakened amid a broader economic slowdown.
Bearish sentiment surrounding China's electric vehicle sector has intensified after three premium carmakers, Xpeng, Nio and Li Auto, reported weak sales for July. Xpeng delivered 38,027 vehicles in July, down 5.2 percent from June, while the other two automakers posted similar declines.
Analysts said the slowdown reflects weakening demand for smart cars amid a broader economic slowdown on the Chinese mainland. The market fears manufacturers could resort to fresh price cuts to defend market share, further squeezing already thin profit margins.
The sector experienced a similar price war last year that eroded profitability across the industry. Investors say August sales data will offer an important signal on whether the market can stabilize.
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