Top Chinese officials, industry leaders may discuss capping EV output at ‘two sessions’
As China’s EV industry faces slowing growth, officials may discuss capping output and boosting tech innovation to combat price wars
Chinese government and industry officials are likely to discuss plans to control domestic electric-vehicle (EV) makers’ output, while encouraging them to prioritise technological innovation during the “two sessions”, as the industry’s growth shows signs of tapering off, according to analysts.
It has been a year since China’s top policymakers stepped in to avoid “involution” that had ensnared nearly all EV assemblers, with vicious price competition largely squeezing their profit margins. To combat deflationary pressures, regulators rolled out measures banning EV makers from selling cars below cost and delaying payments to suppliers.
The “two sessions” refer to the annual legislative meetings of China’s two main political bodies – the National People’s Congress and the National Committee of the Chinese People’s Political Consultative Conference.