Foreign media: Chinese automakers, facing rising raw material costs, have seen their profit margins significantly narrowed, making it difficult to continue price cuts and promotional discounts; the planned price war may fail to materialize.
According to data from the China Association of Automobile Manufacturers, the current net profit for a car priced at 100,000 yuan is only 1,500 yuan, with profit margin dropping sharply from 3.4% in May to 1.5%, far below the manufacturing industry's average of 6.1%.
Domestic vehicle sales in the first half of this year fell by 20.2% year-on-year to 8.7 million units. Under the dual pressures of fading purchase subsidies and tax incentives, as well as declining market demand, most automakers are unable to further reduce prices to clear inventory. Some smaller players may be eliminated due to weak sales, making the significant discounts consumers expected unlikely to happen.
Original source: toutiao.com/article/1871794791858176/
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