Part 12/15:
Fake sales and inflated figures: Chinese automakers reported record-breaking sales figures that masked a bleaker reality—massive inventory surpluses and declining profit margins. These inflated numbers served to buoy investor confidence but were unsustainable.
Subsidy loopholes: Government incentives to promote EV adoption were exploited through complex recycling and subsidy claiming schemes, further exacerbating overproduction and inventory glut.
Export strategies: Chinese companies targeted markets like Russia, where sanctions limited competition, and import tariffs could be manipulated through reclassification as used vehicles. Supportive policies in cities like Shenzhen provided infrastructure and financial incentives to facilitate this export surge.