BYD Price Cuts Shake China’s EV Market, Trigger Fears of Escalating Price War
- tech360.tv
- 2 days ago
- 2 min read
BYD has slashed prices on 22 of its electric and hybrid models, sending shockwaves through China’s electric vehicle (EV) market and sparking concerns of a deepening price war.
The automaker announced discounts ranging from 10% to over 30% on Friday, with the promotion running until the end of June. The cuts primarily target models priced under 150,000 yuan (USD 20,820), though some higher-end vehicles are also included.
The steepest discount applies to the Dynasty series Qin Plus DM-i, which dropped 34% to 63,800 yuan from 79,800 yuan. The all-electric Seagull hatchback saw a 20% reduction, now priced at 55,800 yuan.
BYD’s Hong Kong-listed shares fell 7.5% to HKD 425.20 on Monday. Other EV makers also saw declines, with Xpeng down 3.4% to HKD 75.35, Li Auto down 3.2% to HKD 109.90, and Geely down 6.7% to HKD 18.38.
Analysts at Morgan Stanley noted that while some discounts had been in place since April, the official announcement signals the intensity of market competition.
Citi analysts estimated that BYD’s showroom traffic rose 30% to 40% over the weekend following the announcement.
Other automakers quickly followed suit. On Sunday, Leapmotor, backed by Stellantis, offered up to 30% off two extended-range SUVs until June 8. On Monday, IM Motors, a subsidiary of SAIC Motor, announced a nearly 20% discount on one of its SUVs.
Among China’s 50-plus EV manufacturers, only BYD, Li Auto, and Seres are currently profitable.
Nick Lai, head of Asia-Pacific auto research at JPMorgan, said companies with diverse product lines across multiple price segments are more likely to weather the fierce competition. He added that some EV makers rely on overseas markets for higher profit margins.
BYD cut prices by 10% to over 30% on 22 EV and hybrid models
Discounts run through June, with steepest cut at 34%
BYD shares fell 7.5%, other EV makers also saw declines
Source: SCMP