China's Auto Market Braces for Potential Price War Amid Shrinking Margins

Published: May 27, 2025 12:47

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Recently, automakers such as BYD, Geely Galaxy, and SAIC GM have successively launched sales promotions with price reductions, attracting market attention. A new round of price war may be on the horizon in China's auto market. According to multiple suppliers, with the "price war" in China's auto market, the profit margins of upstream enterprises have continued to shrink to 10%, and payment terms have also been extended to 120 days. Industry insiders are concerned that the "price war" may lead to losses for suppliers and pose risks to vehicle quality and safety.

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