China Halts Auto Price War Amid Sales Slump, Eyes Global Expansion

• China intervenes to stop a fierce car price war after passenger car sales dropped nearly 20% in January, the fastest pace in almost two years.
• New guidelines ban automakers from setting prices below production cost to prevent market monopolization and deceptive pricing strategies.
• The price war has caused an estimated loss of 471 billion yuan ($68 billion) in output value across the industry over three years.
• Despite domestic demand weakening, Chinese automakers are rapidly expanding into global markets, with passenger car exports jumping 49% in January.
• BYD and other major Chinese automakers are targeting significant overseas sales growth, with Canada and the EU easing import restrictions.