Yale Zhang, managing director at Shanghai-based consultancy AutoForesight, added: “I do not see a need to launch another price war. Most of them are in pretty good shape. The majority of these NEV or carmakers will reach their volumes.”

The fourth quarter is set for a surge in auto spending, driven by new EV launches and a year-end rush to use trade-in subsidies, according to Yuqian Ding of HSBC Qianhai Securities. Ding’s data shows EVs need fewer discounts, while gas cars maintain peak discounts of about 22%, the highest in three years.

European brands like Volkswagen, Mercedes, and BMW, which had a tough Q3 in China, may resort to deeper price cuts. AutoForesight warns of a potential premium segment price war, with traditional luxury car production down 4% year-over-year, possibly ending 15 years of growth.