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China is sending its world-beating auto industry into a tailspin

Summary
China has more domestic brands making more cars than the world’s biggest car market can absorb because the industry is striving to hit production targets influenced by government policy, instead of consumer demand, a Reuters examination has found. That makes turning a profit nearly impossible for almost all automakers here, industry executives say. Chinese electric vehicles start at less than $10,000; in the U.S., automakers offer just a few under $35,000.

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ReutersReuters
Center

China is sending its world-beating auto industry into a tailspin

Government policies that prioritize production targets over market demand have led to overinvestment by carmakers. The resulting glut of vehicles has created lose-lose transactions throughout the sales chain, and spawned a variety of irregular practices.

·United Kingdom
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Reuters broke the news in United Kingdom on Wednesday, September 17, 2025.
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