China’s Price War Favors the Cars Beijing Is Trying to Phase Out

A dangerous cocktail of intensifying competition, weak consumer spending and sluggish car sales has led to a slew of price cuts in China only extending and deepening — and electric vehicles aren’t necessarily the ones benefiting.

After Tesla Inc. kicked off a price war that quickly enveloped other manufacturers earlier this year, now some two-thirds of auto brands in the world’s largest car market are offering discounts. The slashing of prices has become broad-based despite China recently extending tax breaks for consumers buying clean cars through 2027.