GWM Chairman suggests Chinese car industry is unhealthy with too many price cuts

While the Chinese car industry has enjoyed significant growth GWM’s
Chairman Wei Jianjun has warned the industry is in an unhealthy state due
to incessant price cuts. In an interview with Chinese publication Sina
Finance the GWM Chairman suggested if it continues like this the Chinese
auto industry will be seriously threatened. Not specifically referring to any
Chinese car maker he warned the excessive and prolonged price war
between rival Chinese brands, especially those selling electric vehicles,
risks cutting corners on safety and reliability. Discounts have ranged up
from Aud.$22,000. Following Mr. Wei comments shares in BYD, Leapmotor,
Nio, and Geely fell by up to 9.5 percent. BYD recently announced subsidies
and incentives in China – the entry Seagull EV Hatch reduced by
Aud.$12,000 while Geely followed suit with similar incentives for its
Chinese buyers. 

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Episode Transcript

Speaker 1 (00:00):
Two gb Moto Talk with David Berthon, brought to you
by the Royal Automobile Club, Australia's premiere motoring club.

Speaker 2 (00:08):
While a Chinese car industry has enjoyed significant growth, gwm's
chairman Wai Jan Jun has warned the industry as in
an unhealthy state due to incessant price cuts.

Speaker 1 (00:18):
In an interview with.

Speaker 2 (00:19):
Chinese publication Sign of Finance, the GWM chairman suggested if
it continues like this, the Chinese auto industry will be
seriously threatened. Not specifically referring to any Chinese car maker,
he warned the excessive and prolonged price war between rival
Chinese brands, especially those selling electric vehicles, risk cutting corners

(00:40):
on safety and reliability, discounts ranging up to forty eight
thousand dollars. BID recently announced subsidies and incentives in China,
the entry Seagull ev hatch reduced by twelve thousand dollars,
while geely followed seat with similar incentives for its Chinese buyers.
I'm David Berthon.