Price War Heats Up, Only Three EV Brands Are Profitable in China

KatadataOTO – Although Chinese brands are succeeding in the global market, competition is actually getting tighter in their home country. Besides economic uncertainty, it turns out that a price war is also one of the culprits hindering sales, causing them to stagnate.

Reported by Carscoops, Friday (05/23), the average discount for electric cars or EVs (Electric Vehicles) in China increased by 16.8 percent compared to April 2025.

Based on data from a JP Morgan study, the CPCA (China Passenger Car Association) recorded that the discount range for electric cars in 2024 was 8.3 percent.

Throughout last year, the margin between the selling price of EVs and their production cost narrowed, dropping to 10 percent from 20 percent four years ago.

Photo : KatadataOTO

Then towards the end of December, many manufacturers slashed EV prices by 10 percent. This move was considered too aggressive and does not have good long-term prospects.

Frankly, it can be said that the majority of Chinese brands are still spending extra funds to sell cars rather than making a profit.

Almost all of them are said to be victims of the heated price war in China. But if these brands choose not to participate in cutting prices, they risk experiencing a more severe sales decline and finding it increasingly difficult to make a profit.

Out of a total of about 50 EV brands in the Chinese market, only three are said to be profitable or able to pocket a profit, namely BYD, Li Auto, and Seres.