China's electric car boom is expected to slow down in 2025

Published On Jan 13, 2025, 6:09 PM

Analysts predict a slowdown in China's electric car market, anticipating only a 20% rise in sales of new energy vehicles (NEVs) this year, compared to a 42% increase the previous year. Major companies like BYD and Tesla are expected to struggle due to increased competition and profit pressures. Only a few manufacturers are profitable, leading to potential industry consolidation. External factors, such as a price war among automakers and a shift in consumer demand towards advanced features, may further challenge the sector's growth.

Stock Forecasts

TSLA

Negative

The slowdown in electric vehicle sales and heightened competition will likely put pressure on companies in the sector. This trend suggests a potential decline in stock prices for automakers with less established market positions, while stronger players like BYD may face slower growth.

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