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Passenger Car Sales Plunge Amid Price War Fallout

2/12/2026

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Story summary
  • The price war among automakers caused passenger car sales to fall nearly 20% in January.
  • The State Administration for Market Regulation issued guidelines to prevent manufacturers from pricing below production costs.
  • The price war has resulted in an estimated loss of 471 billion yuan over three years, even as passenger car exports rose 49% in January.
  • Canada and the European Union have moved to ease tariffs on Chinese electric vehicles.