Why China's electric-car boom is stalling

China's electric-vehicle market, once hailed as a global disruptor, now struggles with overcapacity and unsold inventory, with dealers holding more than three months’ worth of stock. Experts warn that while consumers benefit from cheaper, high-tech cars, manufacturers are seeing their profit margins eroded, prompting a wave of consolidation. Much of the industry’s rapid growth was fueled by state subsidies, echoing the unsustainable expansion seen in China’s property sector. As export markets impose tariffs and domestic demand falters, Beijing faces a critical choice: intervene to support its EV champions or let market forces reshape the industry.
This video summary was created by AI from the original DW script. It was edited by a journalist before publication.