GM CEO Mary Barra says there's 'over capacity' in China's EV market

Original story by: Business Insider Last updated: Oct 23, 2025

Context: General Motors CEO Mary Barra has highlighted significant challenges within China's electric vehicle (EV) market, citing an overproduction issue and an intense price war among a large number of manufacturers. She believes the current market conditions are unsustainable.
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Detailed Summary:
- GM CEO Mary Barra stated that China has too many original equipment manufacturers (OEMs) competing, leading to an unsustainable price war.
- Barra noted that the market is over capacity, which drives exports to other regions, often with the support of subsidies.
- She indicated that GM's strategy in China involves balancing regulatory compliance with close observation of local competitors.
- Similar concerns about market saturation and falling prices were previously expressed by Barra at a conference.
- Chinese automakers, including BYD, have also acknowledged the negative impact of discounting on their profitability. BYD's September sales showed a year-over-year decline.
- Xpeng founder He Xiaopeng predicts that many Chinese automakers will not survive the next decade due to market pressures.
- GM is taking a $1.6 billion charge for a strategic adjustment of its EV capacity and manufacturing to align with demand.
- The article also briefly mentions the impact of US federal EV tax credits, noting their elimination by the Trump administration and its potential to slow EV adoption, though GM still expects growth.