Research Reports

Overview

Global economic slowdown and trade uncertainties have led suppliers to tightly control capacity and inventories, making market competition more intense and cautious. China's automotive and electric vehicle markets are experiencing increased internal competition, with frequent price wars and efforts to reduce supply chain costs. Financial strategies within the industry are becoming more complex, as manufacturers manipulate payment terms to optimize cash flow. Overall, these conditions contribute to a challenging environment for pricing stability and supply management, amid heightened market volatility and geopolitical tensions.

Key Highlights

• The slowdown in the global economy has prompted suppliers to adopt conservative capacity and inventory management.
• Competition among China’s automotive and electric vehicle manufacturers is intensifying, with frequent price wars and significant cost reductions.
• Trade policy uncertainties continue to impact shipment schedules and demand forecasts.
• Suppliers are pre-emptively shipping goods, which may lead to decreased demand in the third quarter due to order fulfillment in the previous period.
• Financial practices are becoming more complex, with brands leveraging long-term payment methods to improve cash flow.
• Overall, these conditions foster an environment of heightened competition and market volatility, adding challenges for pricing stability and supply chain management.

Table of Contents

1. Ongoing Tariff Uncertainties and Increasing Exchange Rate Volatility Are Prompting MLCC Suppliers to Adopt Conservative Approach to Quoting
2. Tariff War Disrupts Shipping Schedules, 3Q25 Order Demand, and Poses Challenges for ODMs in Cutting Material Costs
3. Growing Risk of Downward Corrections in 2H25 Orders and Rising Pressure from Appreciation of Asian Currencies Compel MLCC Suppliers to Adopt Cautious Pricing Strategy
4. Trendforce's View 

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