Xiaomi, one of China’s largest EV maker, reportedly requiring advance payments from customers to continue vehicle production

Just shows how brutal China’s EV price war has become ,that a large part of carmakers are running at razor-thin to almost zero margins

Can too much competition become damaging, especially if it ends up with heavily indebted automakers and part suppliers, or with manufacturers cutting corners on product quality?

Idk

Ironically, gasoline carmakers are running even deeper discounts this year, saw figures as high as 23% average discount rate.

A lot of them are half-owned by local governments in China, who don’t want to let them fail to not lose out local jobs and tax revenues.

If they dont manage to offload excess capacity on foreign market, a lot of Chinese carmakers will go bankrupt in coming years