China's EV Price War Spurs Global Industry Strain

China's aggressive industrial policy has driven rapid expansion in the electric vehicle (EV) sector, leading to oversupply and severe price wars, particularly affecting dealers in the Yangtze River Delta, who account for a significant portion of national sales. These dealers have appealed to automakers to halt below-cost sales and adjust inventory strategies amid financial strains and high stock levels. Despite government efforts to curb destructive competition, price wars continue, pushing automakers to seek profits abroad. In Southeast Asia, Chinese EV brands like Neta face production and debt challenges, while BYD leads in the Thai market. Chinese EV makers have also quickly doubled their market share in Europe, displacing Western competitors despite tariffs. The ongoing competition is creating domestic and global ripple effects, intensifying calls for regulatory action and strategic adjustments.