this post was submitted on 17 Sep 2025
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China has more domestic brands making more cars than the world’s biggest car market can absorb because the industry is striving to hit production targets influenced by government policy, instead of consumer demand, a Reuters examination has found.

That makes turning a profit nearly impossible for almost all automakers here, industry executives say. Chinese electric vehicles start at less than $10,000; in the U.S., automakers offer just a few under $35,000.

Most Chinese dealers can’t make money, either, according to an industry survey published last month, because their lots are jammed with excess inventory. Dealers have responded by slashing prices. Some retailers register and insure unsold cars in bulk, a maneuver that allows automakers to record them as sold while helping dealers to qualify for factory rebates and bonuses from manufacturers.

Unwanted vehicles get dumped onto gray-market traders like Zcar. Some surface on TikTok-style social-media sites in fire sales. Others are rebranded as "used" – even though their odometers show no mileage – and shipped overseas. Some wind up abandoned in weedy car graveyards.

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To bad we couldn't just buy them for retail price and take them off their hands. My guess is they'll just slow production while they develop new production but their used car market should be interesting. Someone can buy say 30 on a fire sale and plug 1 in each day of the month rotating the plug... The batteries would degrade but barely and they would be great for people who can't buy a new vehicle. 5 year old vehicle on sale, 10km on the odometer.