From Yahoo Finance: 2025-06-12 09:52:00

A price war in China’s EV market could impact European car markets as automakers cut prices up to 34%, with EV discounts averaging 17%. China has over 100 EV brands and is expected to reach 33 million vehicles by 2025. Chinese OEMs face oversupply and competition, leading to price cuts and shifting focus to ICE and hybrid vehicles.

Chinese manufacturers may struggle to enter the US market due to high tariffs, while other global markets lack infrastructure for BEV adoption. Indicata projects pressure on the EU, UK, Brazil, Mexico, and Australia to absorb Chinese vehicles. Chinese EV manufacturers aim for 50% of sales from international markets by 2025.

Chinese EV manufacturers face industry consolidation as smaller firms may exit the market. The Chinese Government signals broader shifts for the global auto landscape. The price war challenges Western manufacturers, impacting sales in Europe. European consumers may benefit from lower-priced vehicles, but long-term effects on used car markets could be significant.

Volkswagen and Honda may struggle to compete with Chinese EVs, leading to increased competition in Europe. Automakers may focus on their home markets to avoid CO₂ penalties. The price war in China could impact sales of new and used vehicles in 2025.



Read more at Yahoo Finance: Chinese automotive price war could affect European markets: Indicata