VW joins China price war as new emissions rule looms
to clear inventories of vehicles that do not meet the standard, Fitch Ratings analysts said in a client note on Thursday.
"There is no other way to describe what is happening other than a catastrophic decline in performance of multi-national ICE brands," said Shanghai-based Bill Russo of consultancy Automobility. The price war is likely to accelerate consolidation of the fragmented local auto industry which has over 130 passenger car manufacturers, state-owned newspaper Economic Daily said in a commentary on Friday.
But it could also hurt profitability and innovation and stall development of the overall sector, which is a pillar of the economy, the newspaper said. Local governments have been supplementing incentives to revive demand for cars produced by local automakers. The central Hubei province and state-backed Dongfeng Motor Group Co Ltd have jointly offered subsidies of up to 90,000 yuan, or 40% of list prices for the entry-level
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