China's overall vehicle output, including buses and lorries as well as passenger cars, may hit 33 million units in 2025, compared with an estimated capacity of around 50 million units, Nick Lai, head of auto research in Asia-Pacific at JPMorgan, said in October. The average net per-vehicle margin – the gap between the selling price and production costs such as raw materials, labour and logistics – stood at about 5,000 yuan among Chinese carmakers, according to Lai. He added that this margin could rise four-fold to 20,000 yuan if carmakers were to export more vehicles to overseas markets, where their products could command higher prices. Stephen Dyer, Greater China co-leader and head of Asia automotive practice at AlixPartners, said in July that only 15 Chinese EV brands, or 10 per cent of the country's total, would turn a profit over the next five years, as price competition continued to squeeze profit margins. The price war could accelerate the pace of consolidation in...