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China auto market price war stokes fears of industry shake-out

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An intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market.
The Chinese auto market is experiencing a fierce price war, intensifying competition and raising concerns about a potential industry shakeout by 2025, as reported by Reuters on May 27, 2023. Major automakers like Tesla, BYD, and others are slashing prices to boost sales in a market that saw a 5.8% increase in passenger vehicle sales in April, totaling 1.6 million units. This aggressive pricing strategy is driven by slowing demand and an oversupply of vehicles, with industry experts predicting that only the strongest companies will survive the next few years. The price war is also affecting profitability, with some analysts warning that smaller, less financially robust automakers may be forced out of the market. Additionally, the Chinese government is monitoring the situation closely, as the auto industry is a significant part of the national economy.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/china-auto-market-price-war-stokes-fears-industry-shake-out-2025-05-27/ ]