The "January Red" of the auto market has seen a sharp drop in lithium prices, reducing costs for car companies. Despite fierce competition, BYD continues to lead among new energy car companies. Other new forces such as NIO, Leap Motor, and Xpeng are also performing well. The car price war, which started in 2023, is continuing after the Chinese New Year holiday, with companies like Tesla, Lynk & Co, and Volkswagen offering discounts. The decline in lithium prices has provided space for overall cost reductions for car companies. As the penetration rate of new energy vehicles in the market increases, the traditional fuel car market is shrinking, leading to more intense price competition. The China Passenger Car Association expects the price war to continue throughout the year.

【January Car Export Increased by Over 40% Year-on-Year】China Association of Automobile Manufacturers (CAAM) released the car export data for January 2024, showing that the export of traditional fuel cars reached 343,000 units, an increase of 57.1% year-on-year, while the export of new energy vehicles reached 101,000 units, an increase of 21.7% year-on-year.

EU member states finalised a landmark agreement on Tuesday local time to approve a ban on the sale of new fossil fuel cars from 2035.