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

Key Points

China’s electric car market is headed for a sharp slowdown in 2025, according to analyst predictions, increasing pressure on companies trying to survive.
Strong sales volumes have enabled “strugglers and stragglers” to hang on despite falling margins, Yuqian Ding, head of China autos research at HSBC, said in a report last week.
China’s mix of subsidies and consumer purchase incentives have supported the rapid growth of new energy vehicles in recent years.

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