Latest news with #ChineseAutomakers
Free Malaysia Today
2 days ago
- Automotive
- Free Malaysia Today
Chinese state media calls for crackdown on ‘zero-mileage used cars'
The sale of zero-mileage used cars is seen by many Chinese automakers as an effective way of clearing out an ever-growing inventory of unsold cars. (AFP pic) BEIJING : The Chinese practice of selling brand new cars as heavily discounted second-hand vehicles to get rid of inventory should be ended, the official newspaper of the country's governing Communist Party said in an article published today. The People's Daily, which often signals the positions of China's top Party leaders on a variety of issues, called for a crackdown on the practice, also known as zero-mileage used cars, just weeks after Great Wall Motor's Chairman Wei Jianjun publicly condemned it and China's commerce ministry met with Chinese automakers to discuss it. While China's commerce ministry did not make public its position, the People's Daily struck a harsh tone, calling out the inflation of sales data motivating Chinese carmakers and urging 'tough regulatory action' to restore market order. 'This disguised form of price cutting disrupts normal market order and is a striking example of the auto industry's 'involution',' the People's Daily said, using a term popular in China that describes a race to the bottom driven by excessive competition. 'Once market competition rules are properly enforced, 'zero-mileage used cars' won't be able to run far – or for long.' China is experiencing growing deflationary pressures as US tariffs add to the gloomy mood in the world's No.2 economy. Companies in sectors from fast food to high fashion have been cutting prices amid concerns about oversupply and sluggish household demand. Price wars have gripped the Chinese auto industry in recent years, partly driven by slumping domestic consumption and overcapacity that has left many struggling to meet sales targets. While the sale of zero-mileage used cars is seen by many Chinese automakers as an effective way of clearing out an ever-growing inventory of unsold cars, with domestic and overseas consumers lured by deep discounts on what are still brand new cars, the state-run newspaper listed a litany of negative effects caused by the practice. 'For manufacturers, this sales tactic may help reduce inventory in the short term but compresses profit margins, increases losses, and hinders investment in product quality and innovation – ultimately harming sustainable development,' the article said. 'For consumers, what seems like a good deal in terms of price comes with hidden risks: the loss of first-owner benefits, potential battery degradation, and steeper depreciation when reselling,' it continued, adding the practice undermines fair competition, distorts market data, and disrupts both new and used car markets. The People's Daily singled out manufacturers of electric vehicles as needing to move beyond 'data worship' and competing on volume, in order to focus on product quality and technological innovation. It did not name any specific automakers. The newspaper also listed measures Chinese regulatory authorities should adopt in order to prevent the sale of zero-mileage used cars, including strengthening oversight of second-hand vehicle registration, establishing a vehicle lifecycle tracking system, and strictly controlling the practice of immediate resale after registration.
Yahoo
27-05-2025
- Automotive
- Yahoo
Thai vehicle sales rise 1% in April
Thailand's new vehicle market expanded by 1% to 47,193 units in April 2025 from 46,738 units a year earlier, according to the latest wholesale data released by the Federation of Thai Industries (FTI). Sales last month were driven higher mainly by a sharp rise in battery electric vehicle (BEV) deliveries, reflecting strong marketing campaigns, primarily by Chinese automakers at the recent Bangkok Motor Show. The Thai vehicle market looks like it is beginning to bottom out after two years of sharp declines, which have been blamed largely on tightened lending criteria by banks and auto finance companies in response to a sharp rise in non-performing loans (NPLs) in the last few years. This has left the country's highly indebted consumers and small businesses struggling to access financing. Vehicle sales last year fell by 26% to 572,675 units, from 775,780 in 2023 - the lowest level since 2009. In the first four months of 2025 the market declined by a further 5% to 200,386 units from 210,494 units a year earlier, with sales of pickup trucks falling by 15% to 51,492 units; passenger pickup trucks 12,266 units (-9%); internal combustion engine (ICE) passenger vehicles 48,784 units (-14%); and hybrid vehicles 44,771 units (-5%), while sales of battery electric vehicles (BEVs) increased by 46% to 33,633 units. Sales of pickup trucks continued to decline sharply despite the recent launch of a THB 5 billion loan-guarantee programme by the Thai government, which runs until the end of the year, to support pickup truck purchases by local small and medium-sized businesses. The government has also recently approved a lower sales tax rate for plug-in hybrid electric vehicles (PHEVs), which is scheduled to come into effect at the beginning of 2026. Surapong Paisitpatanapong, vice-chairman of the FTI, told local reporters' The automotive industry remains weak as the high level of household debt continues to keep banks and car financing companies cautious about granting auto loans." Thailand remains the ASEAN region's largest vehicle producer, despite a 12% drop in output to 456,749 units in the first four months of 2025. Exports fell by 17% to 285,869 units, due to lower overseas demand, rising competition from China-based automakers and tightened emissions regulations in some key markets. The Federation now expects full-year vehicle output to drop to 1.4 million units in 2025, down from the 1.5 million units it had forecast earlier in the year. This compares with 1.84 million units produced in 2023. Vehicle and component manufacturers also face the added pressure of new import tariffs in the US. "Thai vehicle sales rise 1% in April" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
