Key Points
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A saturation of the new-energy vehicle market in China has led to a significant price war.
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Ford’s exports from China surged 60% in 2024, reaching approximately 170,000 vehicles.
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56% of China’s car dealerships reported losses in 2025, up from 42% in 2024, with only 24% of dealers operating at a profit.
China’s automotive market has become increasingly competitive, with foreign automakers like Ford struggling to gain traction in an environment where around 50% of vehicles sold are new-energy models. The price war has led to harsh profit margins, forcing many dealerships into the red.
In response, Ford has pivoted to develop China as a low-cost export hub, achieving a turnaround from six consecutive years of losses with a profitable 2024. Meanwhile, the challenging market has placed further pressure on automakers, with 82% of dealerships selling vehicles below wholesale prices.
