General Motors Co. (NYSE:GM) CEO Mary Barra says that the Chinese EV market is currently grappling with overcapacity amid the country’s EV price war.
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‘An Incredible Price War’
Speaking on The Verge’s Decoder podcast on Wednesday, Barra said there was an “incredible price war” going on in China’s EV sector. “You can’t have over 100 different OEMs in a country trying to compete, especially now that they’re competing on price,” Barra said on the podcast. “I would also say the market is over capacity in China,” Barra said, adding that the issue is causing increased exports.
It’s worth noting that Cui Dongshu, the secretary general of the China Passenger Car Association, said that China’s domestic EV market was growing at a fast pace, which was leading to overcapacity in the sector. It was also eating into dealers’ profits.
Mary Barra Calls EVs GM’s North Star
During the company’s Q3 earnings call, Barra called EVs GM’s “North Star,” while the company’s CFO, Paul Jacobson, conceded that the market demand for EVs had fallen down significantly. Barra also pointed towards increased volumes for ICE-powered vehicles in the industry.
GM also halted production of the BrightDrop EV fleet van at the company’s production facility in Ingersoll, Ontario in Canada, citing falling demand for the vehicle. “We have decided to stop BrightDrop production at CAMI Assembly and assess the site for future opportunities,” Barra said.
GM’s $1.6 Billion EV Charge
GM had earlier shared that it took on a $1.6 billion charge related to EVs. $1.2 billion in charges came from EV capacity adjustments, as shown by a recent SEC filing by GM.
GM also pulled back on EV incentives it planned on offering after President Donald Trump‘s September 30 deadline for the Federal EV credit. GM’s decision was also followed by crosstown rival Ford Motor Co. (NYSE:F).
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