China’s EV Market Is Imploding
In China, you can buy a heavily discounted “used” electric car that has never, in fact, been used. Chinese automakers, desperate to meet their sales targets in a bitterly competitive market, sell cars to dealerships, which register them as “sold,” even though no actual customer has bought them. Dealers, stuck with officially sold cars, then offload them as “used,” often at low prices. The practice has become so prevalent that the Chinese Communist Party is trying to stop it. Its main newspaper, The People’s Daily, complained earlier this year that this sales-inflating tactic “disrupts normal market order,” and criticized companies for their “data worship.”
This sign of serious problems in China’s electric-vehicle industry may come as a surprise to many Americans. The Chinese electric car has become a symbol of the country’s seemingly unstoppable rise on the world stage. Many observers point to their growing popularity as evidence that China is winning the race to dominate new technologies. But in China, these electric cars represent something entirely different: the profound threats that Beijing’s meddling in markets poses to both China and the world.
Bloated by excessive investment, distorted by government intervention, and plagued by heavy losses, China’s EV industry appears destined for a crash. EV companies are locked in a cutthroat struggle for survival. Wei Jianjun, the chairman of the Chinese automaker Great Wall Motor, warned in May that China’s car industry could tumble into a financial crisis; it “just hasn’t erupted yet.”
Don’t worry, the EU will pay full price for them and then sell them domestically.
Maybe they might even sell them as beamers or benzs
“Bloated by excessive investment, distorted by government intervention, and plagued by heavy losses, China’s EV industry appears destined for a crash.”
Yes, and that’s why they’re so desperate to ship them to Canada, and why our #DearLeader still has the EV Mandate in place despite the fact that -nobody- wants an all-electric car.
Centralized command and control is a pox upon the body of the nation. Not even the Chicoms with 100% freedom to do -anything- to anybody can make it work. It can’t work. It’s literally impossible.
This is why whenever a socialist says the word “investment” you should laugh. And then p##ch them in the face.
“Bloated by excessive investment, distorted by government intervention, and plagued by heavy losses, Canaduh’s EV industry appears destined for a crash.”
Fixed it.
I just read the most salient comment about your Canadian obsession over Net Zero. Paraphrased – If the Canadian government actually believed they could ‘save the planet’ with Net Zero policies … they’d FLOOD the Canadian market with CHEAP ChiCom EV’s. And now … they’re moving at FIRE SALE prices.
Come on Carney! Step up and show some leadership! You will become known as the man who saved the planet! Ohhhhhhhhh Mommmmaaaaaaa … come on Carney! Open the flood gates to cheap ChiCom EV’s.
Next time we have no power for 3 weeks, like we did in 2003, EV used value will hit $00000:oo
Down from $50.00
EVs – the industry where both the supply and the demand are artificial.
“The practice has become so prevalent that the Chinese Communist Party is trying to stop it. Its main newspaper, The People’s Daily, complained earlier this year that this sales-inflating tactic “disrupts normal market order,” and criticized companies for their “data worship.””
the Data is the only thing the dealerships can control, and failing to meet your sales targets will result at minimum with a loss of face, and much worse when they discover that you are failing the Party.
When the Chinese say a loss of face, they aren’t effing around. If face is lost, it will be yours.
The Chinese regularly do things like this. At one time, I worked for a couple who had come to Canada as refugees from the cultural revolution.
They described to me how when the commissars came to their villages, the locals would transplant rice from multiple paddies into a single one so they would meet the ridiculous yield requirements mandated by the CCP. After a few days, the overcrowded plants in their show plots would all die off, but the illusion only had to last until the inspectors left.
They were incensed with the way the Canadian government had allowed the country to be overrun by Chinese Communists decades after they thought they had escaped Communism.
Government: Find or make a fake problem to solve.
Government: Force a solution that won’t work because, physics or economics.
Government: Get mad that the forced solution to the made up problem can’t work
Government: Push harder….
Sounds like you live in CA … or Canada. Same Communism.
Markham Hislop hardest hit.
My newest ICE vehicle is 14 yrs old.
My oldest is 29.
They work great.
Who needs EV?