Cutthroat Competition is Undermining China’s Auto Industry, Official Says

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What’s new: Cutthroat competition in the face of weakening domestic demand is destabilizing the industrial and supply chains of China’s auto industry, an official said.

The “disorderly competition” is also squeezing Chinese carmakers, many of which have seen their bottom lines suffer, Xin Guobin, a vice minister at the Ministry of Industry and Information Technology (MIIT) said Friday at the China Auto Forum in Shanghai.

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Cutthroat competition and weakening domestic demand are destabilizing China's auto industry, impacting carmakers' profitability, according to a MIIT official.
MIIT plans to combat anti-competitive behaviors to stabilize the industry.
China’s auto sales growth slowed to 6.1% in the first half of 2024, with fossil fuel vehicle sales dropping 13%, while auto exports surged 30.5%.

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What Happened When

First five months of 2024：: China’s auto industry had an average profit margin of 5.3%.

First half of 2024：: China’s auto sales rose 6.1% to about 14 million vehicles, a drop from last year’s growth rate of about 10%.

First half of 2024：: Sales of fossil fuel-powered passenger vehicles fell 13% year-on-year to around 5.7 million.

First half of 2024：: China’s auto exports grew 30.5% year-on-year to nearly 2.8 million cars, of which 605,000 were NEVs.

Friday, July 12, 2024：: Xin Guobin, a vice minister at the Ministry of Industry and Information Technology (MIIT), commented on destabilizing competition in the auto industry at the China Auto Forum in Shanghai.

AI generated, for reference only