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AutoGear

“China with a new strategy for electric vehicles.”

Virgilio Machado by Virgilio Machado
September 15, 2025
in Latest News
Reading Time: 2 mins read
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China will proceed with a plan to “stabilize” the growth of the automotive sector over the next two years to halt the price war among manufacturers and the difficulties in exporting Chinese cars.

The Beijing government’s plan anticipates a slowdown in vehicle sales growth starting in 2025, aiming for a growth of 3% to approximately 32.3 million vehicles sold compared to 2024.

According to data from the China Association of Automobile Manufacturers, this target represents a decline compared to the 4.5% growth recorded between 2023 and 2024.

The plan, announced by eight government agencies for 2025 and 2026 and reported by the state news agency Xinhua, also includes “strengthening inquiries into costs and monitoring prices,” as well as encouraging innovation and supporting domestic demand.

It is worth noting that Beijing has invested heavily in recent years in the development of the Chinese electric vehicle industry; however, the price war among manufacturers globally has led many recently established companies to bankruptcy, as large manufacturers flooded the market with low-cost vehicles accompanied by attractive vehicle exchange programs.

In July, senior Chinese officials had already called for restraint in “irrational competition” and for promoting a “healthier” development of the sector.

Furthermore, Chinese automobile manufacturers also face challenges in exports, especially to the European Union, which initiated an investigation into unfair competition in 2023, ultimately imposing additional tariffs on Chinese electric vehicles destined for Europe.

More recently, Mexico announced a bill to increase tariffs on Chinese automobiles to 50%, compared to the current range of 15% to 20%, irritating Beijing.

Tags: Associação Chinesa de Fabricantes de Automóveiscarros elétricosChinamobilidade elétricaveículos elétricos
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