Vehicle prices in China are spiraling down. What that means for tariffs

Vehicle prices in China are spiraling down. What that means for tariffs

Prices of vehicles in China are in a downward spiral, say experts who expect the circumstances to usher in industry consolidation and create opportunity for legacy automakers while tariffs are in place.

Vehicle Prices in China Unlikely to Fall Further This Year, Nomura Says

Nomura analysts said on Wednesday that while competition in China’s auto market is expected to remain fierce, further declines in car prices appear unlikely in the second half of the year. The brokerage said a renewed round of discounts, triggered by BYD in late May, had reignited a price war, but anticipated that promotions and government subsidies will contribute to a higher demand. The analysts noted, however, that sales may remain lower in t…