Reckless drive: China’s carmakers should think twice before they export their price war to overseas markets

Annual revenues in the world’s largest car market are expected to decline for the first time since 2022, by 3% to 5%, according to Bloomberg Intelligence. When the country emerged after three years of pandemic controls, there were high hopes of economic recovery. That hasn’t happened. Consumers have been reeling from the impact of a real estate crash and prolonged job insecurity, especially among the younger generation. To boost consumption, Beijing has been running a major subsidy programme since April 2024. Similar to America’s cash-for-clunkers plan, it encouraged people to trade in their old cars or scrap them altogether. More…