China’s EV discount war to undermine efforts to stem losses, JPMorgan says
Chinese carmakers offered a record high 16.8 per cent average discount last month, from 16.3 per cent in March, JPMorgan findings show
That finding exacerbates bearish sentiment about Chinese carmakers’ financial performance this year, as most of the EV assemblers have yet to post a profit.
“Price reflects the balance between supply and demand,” said Nick Lai, head of auto research in Asia-Pacific at JPMorgan. “Price competition has turned fiercer this year. Unfortunately, we have not seen a jump in [EV] demand so far.”
Data from the JPMorgan report showed that an end to the brutal discount war in China’s auto market was not in sight, despite growing calls by Beijing and industry officials to turn away from vicious competition.
The vehicles tracked by JPMorgan comprise both petrol-driven and electric-powered vehicles.