China Specialist, Auto and Industrial Specialist

Victoria Li

20 years experience as sell side analyst focusing on China's Industrial and Auto sectors

Thoughts On The Recent Pullbacks in Meidong and EVA

China Auto - Trough Behind Us, Green Shoots Ahead

Thematic (Sector/Industry)

China Automobiles / Thematic (Sector/Industry)

<ul>
<li>Dongfeng announced 12%-35% subsidy on its retail price to reverse weak sales which has seen most of its factories suspending production</li>
<li>This has triggered a price war with more than 30 brands joining with similar ranges of price discounts/subsidies, most of which are JV brands - some upto 50%</li>
<li>We see a possibility that some of the JV brands exit China this year</li>
</ul>


Dongfeng announced 12%-35% subsidy on its retail price to reverse weak sales which has seen most of its factories suspending production
This has triggered a price war with more than 30 brands joining with similar ranges of price discounts/subsidies, most of which are JV brands - some upto 50%
We see a possibility that some of the JV brands exit China this year


Chongqing Changan Automobile Company (200625 CH)

China Auto: ICE Price War Triggered by Dongfeng, JV Players Under Pressure