China car crisis 2025… price war and market slowdown

The automobile market has recently witnessed a wave of great instability, which has put competing companies under successive pressures.

Analysts’ expectations about the automobile market indicate a sharp slowdown in China during the year 2025, despite the increase in sales of new energy cars by more than 42% during the year 2024, according to the latest statistics from the China Passenger Car Association.

The number of vehicles sold in China last year reached 11 million vehicles, and since the beginning of the year China has witnessed a slowdown in the car market according to the report issued by CNBC, which disappointed many and put car companies in front of the terrifying specter of competition, in addition to revenue expectations that shocked car lovers and companies as well. .

China car crisis

The HSBC team and automotive experts reported shocking news about a 20% decline in the percentage of sales of new energy cars in China this year, equivalent to half of last year’s sales, which puts some of the weaker companies facing a real crisis, especially with the decline in sales and the slowdown in the market.

The situation is expected to be completely different from 2024, which witnessed prosperity for all companies and a revenue year suitable for all

price war

China witnessed a competitive price war between different car brands, especially with the increasing production of electric cars in China.

Companies began launching their cars at lower prices to win the market, and the market witnessed the release of cars, such as: “SU7” at lower prices than expected, which strongly competed with the Tesla Model 3.

Car promotional advertisements also witnessed many claims about the capabilities of the vehicles, but this year it is different, according to HSBC’s expectations. “The winner in the car market remains only the version with superior and smart features.