Reuters carried an extended report on this. In summary:
Dealers slash prices to qualify for factory rebates, while unsold cars are registered and insured as “sold,” exported as zero-mileage “used” vehicles, or dumped onto gray-market platforms like Zcar. Some vehicles even end up abandoned in car graveyards or auctioned online at a fraction of their original price. Analysts say the system has become a vicious cycle of oversupply and destructive competition.
The crisis has wider implications: autos and related industries make up about a tenth of China’s GDP, and foreign automakers are rapidly losing market share. Meanwhile, Europe and the U.S. are wary of a flood of cheap Chinese cars disrupting their markets. With EV price wars now entering a third year, the industry faces a shakeout, but political incentives and economic risks may delay tough reforms.
Australia has no local car manufacturers, so nothing to protect. Getting some of these into the coutnry would be an big impact on inflation (lower).
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