Economic Times (July 4)
“The Chinese government is signalling enough is enough when it comes to the fierce competition in the country’s electric car market.” The nation’s “industrial policy has engineered a remarkable transformation to electric vehicles in… the world’s largest auto market,” but it has also “spawned far more makers than can possibly survive.” The government is moving to address “long-simmering concerns about oversupply and debilitating price wars.” The government is now “cracking down… targeting unsustainable price wars led by market giant BYD.” Marking a first step “toward stabilising the market,” the government has introduced “a new pledge to pay suppliers within 60 days.”
Tags: BYD, China, Cracking down, Debilitating, EV market, Fierce competition, Government, Industrial policy, Oversupply, Price wars, Stabilising, Suppliers, Unsustainable
Bloomberg (June 17)
“China’s home prices fell at a faster pace in May, as the country’s most forceful efforts to support the property market took time to revive demand.” Existing home values dropped by 1%, “the sharpest decline since at least 2011.” Oversupply is “dragging prices lower, giving people less reason to invest in property.” Meanwhile, “investors and analysts remain skeptical” that the government’s recent measures to revive the sector “will be sufficient” given the “funding revealed so far and the slow progress of existing trial programs in several cities.”
Tags: 2011, Analysts, China, Decline, Existing homes, Home prices, Investors, Lower, May, Oversupply, Prices, Property, Skeptical
Markets Insider (January 17)
“The US and European Union are seeing large stockpiles of solar panels after soaring manufacturing capacity fueled a substantial oversupply.” At year end, “an estimated 45 gigawatts of modules in the US and 90 gigawatts in the EU had piled up, nearly twice the forecast installations for 2024.” The glut is leading to “even lower prices” and “fierce competition between manufacturers,” with “less efficient manufacturers… bound to lose out, as overcapacity and low module prices add to financial challenges.”
Tags: 2024, 45 GW, 90 GW, Competition, EU, Forecast installations, Glut, Manufacturing capacity, Overcapacity, Oversupply, Prices, Soaring, Solar panels, Stockpiles, U.S.
Bloomberg (August 25)
Despite China’s promising long-term fundamentals, global automakers are facing “an oversupply time bomb” as China’s economy cools. Already, some import car dealers are holding nearly 150 days of supply. “If cutthroat competition for volume sales persists, exacerbated by weakness in the other once-promising BRICS markets, automakers could be headed toward a massive pileup in China.”
Tags: Automakers, BRICS, China, Competition, Economy, Fundamentals, Oversupply, Supply
