China’s EV makers feel crunch as high R&D costs collide with price-war margin pressure

Quick Summary:

More than 50 new models could hit the market this year, but relentless discounting is devouring profit margins, spelling doom for some firms.

In the world’s largest automotive and EV market, new models that feature advanced autonomous driving systems and longer driving ranges can draw thousands of orders within days of presale launches, buoyed by young consumers’ increasing interest in environmentally friendly cars over the past two years.

However, high development costs and a brutal price war are making it difficult for most of them to achieve profitability.

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Article Details

Author / Journalist: Daniel Ren

Category: Business

Markets: Hong KongChina

Topics: Generate Development Suolei Shanghai Electric Costs Advisory Competition Market Firm Models

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-09-18 @ 06:00:15 (5 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 202 words

Reading Time: 2 minutes read

Sentences: 5 lines

Sentence Length: 41 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 22571555

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