China’s increasingly heated price war is exacting a heavy toll on automakers. Steep discounts have failed to reverse a slide in sales for most manufacturers, and earnings have taken a hit.
A Bloomberg analysis of first-quarter results from more than a dozen Chinese automakers showed revenue and profit margins are under pressure. Save for a few exceptions such as BYD Co. and Changan Automobile Group Co., most top listed Chinese automakers suffered a decline in profits — the worst showing since the beginning of 2020, when the industry was crunched by the start of the pandemic.
“It turned out the price cuts didn’t stimulate too much extra demand,” said Minghsun Lee, head of greater China auto research at Bank of America Corp. “Consumers have the perception that car companies will continue to cut prices, so they’ll wait.”
Here’s how key metrics of deliveries, revenue and profits are faring:
Of the 17 Chinese carmakers that have pu…