Changan Auto joins industry price war – China’s latest business and technology news

Business & Technology

A summary of the top news in Chinese business and technology for May 31, 2017. Part of the daily SupChina news roundup "What is going on at Ivanka Trump’s Chinese shoe factory?"

Caixin reports that Changan, one of China’s largest domestic car manufacturers, has “joined an ongoing industry-wide price war to clear inventory,” making price cuts ranging from 4,000 to 18,000 yuan ($585 to $2,600) across its fleet. The company’s flatlined year-to-year sales growth for January through March, and startling 58 percent plunge in sales in April, illustrate its struggles to compete with the price cuts of carmakers such as Great Wall Motors and Audi AG.

Caixin notes one company that has remained above the fray and enjoyed striking success without price cuts: Geely Automotive. The company, known for its wildly popular sport utility vehicles (SUVs) and its high-profile takeover of Volvo Cars in 2010, enjoyed “total car sales surging 98% in the first quarter” of 2017. Read more about Geely’s remarkable rise in this SupChina feature.