Electric cars are caught in a tough price war

As a global EV leader, China has far surpassed other countries in terms of both sales and export ratio, and the entire ecosystem is already very mature. More and more car manufacturers are seizing this piece of cake. The imbalance between supply and demand is getting bigger. The Chinese EV market is already facing a “never-ending” wave of price cuts

Among them, Tesla took the lead in announcing price cuts in 2022 in order to stabilize its market position, causing a chain effect of “price cuts”. As the biggest competitor, BYD also completely lowered prices soon after. Other major brands such as Ideal, SAIC, NIO, and Chery responded. This has triggered wave after wave of “price reduction waves”, forming the internal phenomenon seen so far

In order to stand out from the harsh competitive environment, the price cuts made by some car manufacturers are even more dumbfounded. With the attitude of “I would rather lose or not lose”, they quickly run out of breath when beating other peers. The entire field is already heating up, and everyone is leaving China one after another, so where will the next battleground be? Southeast Asia

Due to the impact of the price war, EVs of various brands are becoming more and more affordable, and consumers in emerging markets are becoming more and more accepting of EVs. For example, Thailand, Indonesia, the Philippines, and Malaysia have all “doubled” in the past few years. Not only dealers, but the supply chain required for the EV ecosystem, such as cables, electricity, distribution systems, charging piles, and battery replacement, will continue to benefit. With the help of the government actively promoting energy transformation, I believe more companies will seize this piece of cake in the future

As an investor, are you optimistic about the development of Malaysia's EV ecosystem and invest in related companies? Please leave a message to tell me what you think