KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
China’s effort to cool down the electric vehicle (EV) price war is seeing little success, as major automakers continue offering steep discounts to lure buyers in an overcrowded and cautious market.
Discounts Remain Widespread
All of China’s top 20 auto brands either maintained, deepened, or only slightly reduced discounts in July, according to China Auto Market data.
Seven brands increased promotions despite Beijing’s June warning against “rat-race competition.”
Overall promotions in July were higher than a year earlier, showing muted response to government pressure.
Why It’s Hard to Control Prices
Analysts note that carmakers are unlikely to slash sticker prices directly, but will continue offering indirect perks, such as:
Interest-free financing
Complimentary home chargers
Cabin upgrades (premium seats, connectivity perks)
Average sale prices keep drifting lower as buyers favor cheaper models:
BYD: 114,760 yuan (July) vs 116,200 yuan (June)
Geely: 104,300 yuan vs 105,700 yuan
Battle for Market Share
BYD, China’s top EV maker, remains in focus after triggering scrutiny with sweeping discounts earlier this year. Analysts await its Aug 29 earnings report for signs of how price cuts hit profitability and deliveries.
Competition intensifies as new entrants like Xiaomi join established names including Nio and Xpeng with new model launches.
BYD’s 2025 delivery target: 5.5m vehicles (delivered 2.49m in Jan–Jul).
Foreign Automakers Respond Differently
Luxury European brands Mercedes-Benz, BMW, and Audi raised their average sale prices in July.
A contributing factor: Beijing’s move to stop auto loan partnerships that incentivized deep dealer discounts.
Industry Voices
Leapmotor: Pricing strategy unchanged, citing its vertically integrated model that cuts costs.
Xpeng’s Brian Gu: Says crackdown targets volume players but still aligns with government’s push for innovation and ecosystem-building.
Li Yanwei (China Automobile Dealers Association adviser): Prices unlikely to fall further but also difficult to push higher.
Key Takeaways
Policy vs. Market Reality: Beijing’s efforts face resistance as competition and overcapacity keep prices under pressure.
BYD in Spotlight: Upcoming earnings will be critical for investor sentiment and guidance on 2025 targets.
Foreign vs. Domestic: European brands comply more with government signals, while Chinese EV makers remain aggressive.
Outlook: Prices may stabilize, but meaningful upward adjustment looks unlikely in the near term.
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