China EV shares are feeling the heat as price war concerns grow [Video]

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Post author By Curator
Post date May 7, 2024

New cars of the “Dolphin” model from Chinese car manufacturer BYD are in the harbor.

Picture Alliance | Picture Alliance | Getty Images

Chinese electric vehicle makers shares listed in Hong Kong fell on Tuesday as worries of price wars in the sector grew.

China’s EV market, the world’s largest and most crowded, is seeing fierce competition from local players as well as U.S. giants like Tesla to win as much market share as possible through promotions and price cuts.

“While across the board price cuts will put pressure on near-term earnings and margins, this could be offset by a boost in demand as EVs widen their appeal to a broader range of consumers,” Yuqian Ding, head of China auto research at HSBC Qianhai told CNBC.

While consumer interest is improving, the “wait for a better price” sentiment continues to constrain sales volumes for EV makers, Ding said.

At least 30% of China’s entire auto market is made up …