China EV Industry In Crisis | This Changes The EV Industry Forever

China EV Industry In Crisis | This Changes The EV Industry Forever

#china #ev #collapse

Get ready for an automotive showdown like no other! In China, traditional fossil fuel carmakers and new energy vehicle manufacturers are going head-to-head in a fierce competition. Why? Because the market has hit a rough patch with slow sales, and everyone wants a bigger piece of the pie.

This has caused an all-out pricing war that is shaking up the world's largest auto market. Competition is heating up, and big names are feeling the heat. Some well-known producers have already been left in the dust as the industry grows and becomes more competitive.

Byton Ltd., backed by industry veterans and major players like Tencent Holdings Ltd. and Foxconn Technology Group, had to pause car production. Even Evergrande New Energy Vehicle Group Ltd. is still waiting for its grand plans to materialize.

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Tesla was the first to lower its pricing in response to a reduction in demand caused by the expiration of China's EV subsidies. Other EV manufacturers, such as BYD, followed suit. But the shockwaves didn't stop there! Traditional car manufacturers, like FAW, Dongfeng, SAIC, and even Chevrolet, unleashed their own price wars.

What sparked this huge competition? It all began with the rise of electric vehicles and China's new, stricter emission rules coming on July 1st. And to top it off, regular car prices dropped dramatically by a staggering 100,000 yuan (which is around $14,600).

Just think about it! People couldn't resist the appeal because, let's be honest, traditional cars still have some unbeatable advantages. Surprisingly, this competition from the traditional vehicle sector has squeezed the EV market.

Despite recording strong sales in December, the pressure has mounted. An insider has also shared insights. They say, "As oil vehicle prices fall, the price advantage of EVs diminishes. Consumers are opting for oil vehicles instead of EVs, given similar price levels.

In recent months, battery makers have received fewer orders from the EV industry. So, instead of buying materials from the spot market, they're keeping their inventories low. This means that weaker brands will disappear, leaving only a few powerful China EV players in control.

As EV demand continues to decrease, lithium salt producers are locked in a struggle. Traditional vehicle producers started by cutting prices in early March, which has greatly affected the lithium industry.

But that's not all! The price war has also made buyers hesitate and caused weak demand in the battery raw materials market. Unfortunately, the recovery of the EV sector is expected to be slow.

The impact is undeniable. Cathode producers are urgently reducing their lithium salt inventory. Why? Because lithium prices are dropping rapidly, and there's no sign of demand improving anytime soon.

The EV industry is like a wild roller coaster, and surprising news is now a regular thing. Don't believe it? Well, a battery metal market insider spilled the secrets, revealing that job cuts, reduced production, and limited working hours are happening all the time.

And guess what? These price cuts are affecting everyone! The production rates of key materials are dropping significantly, reaching as low as 20-30%. Yes, you heard it right, even lower than that according to reliable sources.

No wonder the prices of battery metals are rapidly going down. But hold on, let's go back in time. Just last year, the EV market was booming, reaching its peak of success. The price war is a battle for survival that could completely change the industry and leave uncompetitive businesses behind.

More than 40 brands have joined the fight by cutting prices, as the showdown happens between (New Energy Vehicle) and (Internal Combustion Engine Vehicle) manufacturers.They are all fiercely competing to attract customers, going to great lengths to win them over.

But here's the astonishing moment! Dongfeng Motor Group, a state-owned company supported by the local government, has made an offer that's simply mind-blowing.They have reduced their prices by an incredible 40% off the original listed price.

Chinese EV manufacturer Letin’s request for bankruptcy denied. On the other hand, On May 5th, Levdeo, a Chinese electric vehicle maker, shocked everyone by filing for bankruptcy.
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