BEIJING: China unveiled a plan on Saturday (Sep 13) to “stabilise” growth in its auto sector in the face of a price war between competitors and export woes, state media reported.
Announced jointly by eight government departments, the plan for 2025 and 2026 “stresses cost surveys and price monitoring”, as well as encouraging innovation and domestic demand, according to state news agency Xinhua.
The plan foresees a slowdown in total vehicle sales to around 32.3 million this year, amounting to 3 per cent growth.
That compares to 4.5 per cent growth registered in 2024, according to the China Association of Automobile Manufacturers.
Beijing has invested massively in recent years to support the development of China’s electric vehicle industry.
The plan published on Saturday foresees 20 per cent growth year-on-year in new energy vehicles, with 15.5 million units in 2025.
However, a price war has left many startups bust as firms flood the domestic market with low-cost cars and trade-in schemes.
During a meeting in July, Chinese officials called for an end to “irrational competition” and a focus instead on more healthy development.
China’s export market has also been hit, with the European Union launching an investigation in 2023 into unfair competition in the country’s auto industry.
This week, Mexico proposed a 50 per cent duty on car imports from China, up from 15-20 per cent, prompting Beijing’s ire.
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