Foreign carmakers in China could face annual profit losses of up to US$20 billion due to increased competition from domestic manufacturers and a shift towards electric and smarter vehicles.

This could lead to an overcapacity of 10 million vehicles, prompting foreign automakers to reevaluate their strategies in the Chinese market.

On the other hand, leading Chinese carmakers are expected to see increased profits as they gain market share. By 2030, some top local firms could potentially double their profits.

Despite aggressive pricing strategies, China's auto market is experiencing strong growth, with October's wholesale passenger vehicle sales reaching 2.73 million units, a 12% increase compared to the previous year and the highest monthly sales in ten years.

Notably, more than half of the vehicles sold in October were electric, reflecting the ongoing shift in consumer preferences.