Surging Costs, Price-Conscious Buyers Add to Woes of China’s EV-Makers

(Bloomberg) — China’s electric-vehicle (EV) makers have a conundrum on their hands. Rising raw material costs have begun to squeeze margins, and many have raised sticker prices in response. But tipping EVs into the too expensive basket for consumers risks undermining demand just as the government is seeking to spur adoption.

That’s not a problem confined to China. Automakers the world over are experiencing the same pressures. What makes China unique is its commitment to simultaneously rolling back EV subsidies, setting up a delicate balance between growth and profit in the world’s biggest market for clean cars.