Chinese Carmakers Struggling With Market Share Domestically

Even though it seemed like a good idea at first, the bulk of Chinese automakers investing heavily in electrified vehicles these past few years hasn’t turned out the way they would have hoped.

Brands such as Geely are continuing to lose market share domestically, with sales dropping more than 20% for the fourth straight month this July, while China’s economic growth went down to 6.2% in the second quarter of 2019, from 6.6% for all of last year.

While domestic brands mostly sell compact and subcompact sedans and crossovers aimed at low-income customers, the latter are now more likely to cut discretionary spending on big-ticket items such as automobiles, reports Autonews Europe.

In Geely’s case, three new products were launched this year: their first MPV, a compact crossover closely related to the Volvo XC40, and a compact car that sits under the electric vehicle brand Geometry. However, none of these new models have moved the needle significantly, with sales falling 24% to 91,375 units last month.

Also read: China’s Baidu Partners With Geely And Toyota On AI Tech

But why has the tide turned on electrification as a strategy in China? On June 25, Beijing finished cutting subsidies by more than 50% for both EVs as well as plug-in hybrid models, leading to fewer sales and less overall demand.

Another major Chinese carmaker, Jianghuai Automobile, saw its EV sales fall a massive 66% last month – this goes to show that consumers have little interest in environmentally friendly vehicles if government subsidies prove insufficient.

With Beijing looking to phase out remaining subsidies for electrified cars by the end of this year, it appears that Chinese brands will continue to struggle on their home turf.

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  • MarketAndChurch

    It’s kind of like their over-investment in empty high speed rail or vacant high rise projects. Racing towards the future to the extant that China has done is useless if you don’t first prepare your people for it.

    • Ben


    • illogicalPotato

      At least they didn’t have to pay for the research and development of those trains. They tookstole the tech from Siemens during the beijing olympics.

  • 85ZingoGTR

    Even Chinese customers don’t want their cars.

  • Tobias Schreyer

    The market is cooling down, that’s the reason for lower sales at Geely (& nothing else). Better not look at Hyundai or Kia sales. They are down like 50%. And they even got to shut down two factories.

  • GobbleUp

    Burn baby burn.

  • Mr. EP9

    They went all in and got burned.

  • EyalN

    by 2025 no one will sell electric cars

    • illogicalPotato

      Put money on that?

  • Tobias Schreyer

    Talking about sales in China…


    Wow, Tesla has destroyed the competition!

  • Сафиуллинь-Мухамед Рамазанов

    That’s good thing
    Scrap EVs and SUVs and let the world get some excitement again

  • iddqd

    soon global economy will hit recession-stage and EV’s along all environmentalists propaganda will go bye-bye..

    • PoisonEagle

      wow you must be an expert.

      • illogicalPotato

        Definitely a special one.

    • Dude

      Lol wanna bet? The last recession skyrocketed gas prices and was the catalyst for the Prius’s explosion in popularity.

      • iddqd

        the Prius wasn’t already cheap by comparison to equally powered ICE-cars- and the sales weren’t exactly astronomical, were they..
        dont get me started on average EV entry price tags and what they have to offer for that…
        really doesn’t take a rocket scientist to figure this one out.

        • Dude

          The Prius’s best years were 2007 and 2008 where it was the 14th best selling car in the country. Anyone with common sense would say that outselling 95% of the market is pretty great. People have been saying that EV will die every year for the past decade and it still hasn’t happened. Get over yourself.

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