Price War Among China’s Automakers Threatens Profitability, Analysts Say

The rash of recent price cutting in China’s auto market could further squeeze the profitability of manufacturers already struggling with slowing demand, analysts have warned.

“The evolving price war in China’s car market … is likely to extend into the second quarter and erode profitability along the entire automobile value chain in 2023,” analysts at Fitch Rating Inc. said in a report Thursday.