While the Chinese car industry has enjoyed significant growth GWM’s Chairman Wei Jianjun has warned the industry is in an unhealthy state due to incessant price cuts. In an interview with Chinese publication Sina Finance the GWM Chairman suggested if it continues like this the Chinese auto industry will be seriously threatened. Not specifically referring to any Chinese car maker he warned the excessive and prolonged price war between rival Chinese brands, especially those selling electric vehicles, risks cutting corners on safety and reliability. Discounts have ranged up from Aud.$22,000. Following Mr. Wei comments shares in BYD, Leapmotor, Nio, and Geely fell by up to 9.5 percent. BYD recently announced subsidies and incentives in China – the entry Seagull EV Hatch reduced by Aud.$12,000 while Geely followed suit with similar incentives for its Chinese buyers.

IMAGE CREDIT / D BERTHON

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