I agree, your opinion is valid. Even if we ignore the news, as we saw with Evergrande, everything was fine there not so long ago, with huge progress, billions in revenue, and prospects for decades to come... and then one day it all collapsed! And the market was VERY much in demand, certainly more in demand than cars in terms of value to people.
And let's be honest — the Chinese auto industry has real problems that it has so far managed to hide or contain:
- overproduction
- very strong dependence on state support
- limited demand within China
- subsidies can only be offset by high prices, which only the Western market can provide, never the market of third world countries.