GM CEO Mary Barra says there's so much EV competition in China that it's driving a price war that isn't sustainable

• General Motors CEO Mary Barra said connected Tuesday that EV manufacturers look steep title successful China.
• That title comes pinch prices that are going "lower and lower," she said.
• It's not sustainable for EV manufacturers for illustration GM, Barra said.

General Motors CEO Mary Barra said location are truthful galore companies trying to waste EVs successful China correct now that it's driving a value warfare that isn't sustainable.

Barra made nan comments astatine nan TechCrunch Disrupt convention successful San Francisco connected Tuesday, responding to a mobility astir nan explosion of EV income successful China. More than 120 brands sold EVs successful China successful 2023 compared to astir 60 successful nan US — putting into position conscionable really overmuch title location is for GM and different manufacturers.

The EV marketplace successful nan country is oversaturated, Barra said Tuesday, echoing comments she's made recently. She said nan EV business successful nan state was "shifting dramatically" — and that "lower and lower" prices being driven by specified title will go untenable.

"From a China perspective, EV take has been heavy regulatory-driven," Barra said, referring to nan Chinese government's push for EV adoption. "But what besides has occurred is location are over a 100 Chinese OEMs correct now, chiefly focused connected EVs," she said. OEMs are "original instrumentality manufacturers" that create parts for different businesses to usage successful their products.

The flood of EV-focused startups pushing inexpensive vehicles successful China has posed expanding challenges for European and US automakers in caller years.

"You person to look astatine what nan sustainable business is because nan business that is location correct now is not sustainable," Barra said. "Of nan 100 aliases truthful companies, only little than a fistful are profitable," she said. BI didn't independently verify Barra's calculations.

European automakers person besides struggled successful nan competitory China EV market. During its third-quarter net telephone earlier this month, Mercedes-Benz reported a 31% drop in income of battery-powered cars twelvemonth complete year.

GM, meanwhile, outperformed Wall Street's estimates and sent shares soaring much than 9% pursuing its third-quarter net report. In China specifically, GM sold 14% much vehicles successful nan 3rd 4th than successful nan second. And its "NEV" class — aliases caller power vehicles, which see EVs — for nan first clip sold much than its internal-combustion models successful China, GM said.