Too many cars, no one to buy

Audio Articles now available!

Download the Reuters App.

One Essential Read

Recommended by Anisha De, Newsletters & Notifications Audience Producer

China is sending its world-beating auto industry into a tailspin

New cars are advertised for sale at deep discounts in a showroom in Chengdu, China.

New cars are advertised for sale at deep discounts in the Zcar showroom in Chengdu. REUTERS/Zhang Yan

On the outskirts of Chengdu, a city of 21 million, a showroom in a shopping mall offers extraordinary deals on new cars.

Visitors can choose from some 5,000 vehicles. Locally made Audis are 50% off. A seven-seater SUV from China's FAW is about $22,300, more than 60% below its sticker price. These deals are only possible because China has too many cars.

Years of subsidies and other government policies have aimed to make China a global automotive power and the world's electric-vehicle leader. Domestic automakers have achieved those goals and more – and that's the problem.

Read the Special Report

Get full access to Reuters.com for just $1/week. Subscribe now.

Sponsors are not involved in the creation of newsletters or other Reuters news content. Advertise in this newsletter or on Reuters' website

Reuters One Essential Read is sent three days a week. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here.

This email includes limited tracking for Reuters to understand whether you've engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement.

Terms & Conditions