China’s State Administration for Market Regulation (SAMR) made the decision to bar all vehicle manufacturers from selling cars at less than manufacturing cost. This puts an end to the brutal homegrown competition that’s projected to have cost the automotive industry $68 billion.
This action will likely provide stability to the auto industry in China. However, this could also impact the way that global EV prices are decided. US buyers face higher EV prices, while global markets may see more affordable options.
Companies like BYD built complete supply chains, allowing rapid innovation, with Chinese firms developing new models in roughly half the timeframe compared to legacy automakers.
