China’s electric vehicle discounts hit record high, profit limit is 3 automakers

China’s electric vehicle price war is bigger than ever, but how long?

China has recently been known for providing important electric vehicle (EV) subsidies, with new April figures showing the country’s discount hitting a record 16.8%, up 0.3% from March. While EV discounts are popular among drivers, the offer doesn’t seem sustainable as few profitable earners in China’s EV manufacturers can make money.

China has about 50 active electric car manufacturers, the most in any country in the world. However, there are only three Chinese electric car manufacturers at present: BYD, SERES and LI AUTO. Bider is the world’s largest automaker, Lee Auto is Tesla’s closest competitor on the mainland, while Seres built the Aito-Brand smart vehicle. AITO vehicles are all electric and hybrid vehicles with advanced driver assistance systems that utilize LIDAR, HD cameras, ultrasonic radar and other technologies.

The difference between the selling price of electric vehicles and the production costs of automakers fell to 10% last year, according to Carscoops. “Almost everyone is a victim of price competition. But if any of them choose to exit the price war, their sales will drop and make it more difficult to publish net income,” Cnevpost’s Phate Zhang said. “China Passenger Car Association reports that China’s average electric vehicle discount in 2024 is 8.3%. “Price reflects the balance between supply and demand. Price competition has become more intense this year. Unfortunately, we didn’t see [EV] So far, demand.

Export value in China’s competitive electric vehicle landscape

Lai stressed strong exports as China’s electric vehicles increased profits as their vehicles had greater margins overseas. In the first four months of 2025, China’s total automobile exports in the morning and in and since then were 33%, up from about 8% in the last two years. In April, BEVs and hybrid vehicles accounted for 33% of mainland China’s vehicle exports. Byd promotes low-interest financing by promoting low-interest financing and price cuts, especially in its Plug-in Hybrid Vehicle (PHEV) lineup, the difference between one of the most competitive export destinations for Chinese electric vehicle manufacturers in Australia. In China, electric vehicles were 43% of China’s automobile sales between January and April, up 2% year-on-year. JPMorgan Chase’s financial report predicts that by 2030, China’s electric vehicles will account for 80% of the mainland’s automobile market.

The final thought

According to the South China Morning Post, analysts predict that in the next two years, larger competitors will gain more secondary players in China’s booming electric vehicle market or be forced to withdraw completely. “With the ongoing oversupply, Price War will extend Price War. Carmakers are introducing more low-price models to gain share in the mass market,” said Claire Yuan, director of ratings for Chinese auto companies at S&P Global Ratings. “As a result, the company said, “Carmakers are introducing more low-price models to gain share in the mass market,” Nikkei Asia reported. The best-selling all-electric car in China in April is the star Wish Wish sedan of Geely’s Galaxy EV brand. The base wish range is about 192 miles and costs $9,500. By comparison, Tesla’s Model 3 starts at about $32,688 in China.

China’s electric vehicle discounts hit record high, with profit limits of 3 automakers, first appeared on Autoblog on May 25, 2025