China shows signs of tackling the price wars that are taking a toll on its EV industry
BEIJING (AP) — The Chinese government is signaling enough is enough when it comes to the fierce competition in the country’s electric car market.
China’s industrial policy has engineered a remarkable transformation to electric vehicles in what is the world’s largest auto market. In so doing, it has spawned far more makers than can possibly survive. Now, long-simmering concerns about oversupply and debilitating price wars are coming to the fore, even as the headline sales numbers soar to new heights.
Market-leader BYD announced this week that its sales grew 31% in the first six months of the year to 2.1 million cars. Nearly half of those were pure electric vehicles and the rest were plug-in hybrids, it said in a Hong Kong Stock Exchange filing. The company phased out internal combustion engine cars in 2022.
BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairman of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory.
“When volumes get bigger, it’s just much harder to manage and you become the bullseye,” said Lei Xing, an independent analyst who follows the industry.
The government is trying to rein in what is called “involution” — a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere.
FILE – A man stands near the Han L EV model from BYD during the Shanghai auto show, April 23, 2025. (AP Photo/Ng Han Guan, File) ·ASSOCIATED PRESS
BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData.
With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD’s overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the U.S. and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair advantage.
Market leader BYD comes under attack
The latest bout of handwringing started when BYD cut the price of more than 20 models on May 23.
The same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the “healthy development” of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover.
“The Evergrande in the automobile industry already exists, but it is just yet to explode,” he said in a video message posted on social media.
Two days later, a BYD executive rejected any comparison to Evergrande and posted data-filled charts to buttress his case.
“To be honest, I am confused and angry and it’s ridiculous!” Li Yunfei, BYD’s general manager of brand and public relations, wrote on social media. “All these come from the shocking remarks made by Chairman Wei of Great Wall Motors.”
Next, the government and an industry association weighed in. The China Association of Automobile Manufacturers called for fair competition and healthy development of the industry, noting that major price cuts by one automaker had triggered a new price war panic.
On the same day, the Ministry of Industry and Information Technology vowed to tackle involution-style competition in the auto industry, saying that recent disorderly price wars posed a treat to the healthy and sustainable development of the sector.
“That price cut might have been the final straw that irked both competitors and regulators for the ruthlessness that BYD continues to show,” Lei said.
A promise to pay suppliers within 60 days signals possible shift
The following month, 17 automakers including BYD made a pledge: They would pay their suppliers within 60 days.
One way China’s automakers have been surviving the bruising price wars is by delaying the payments for months. The agreement, if adhered to, would reduce financial pressure on suppliers and could rein in some of the fierce competition.
“The introduction of the 60-day payment pledge is the call of the government to oppose involution-style competition,” said Cui Dongshu, the secretary-general of the China Passenger Car Association.
It also reduces the risk of an Evergrande-like scenario.
Many automakers had stretched out payments by paying suppliers with short-term debt — promises to repay them in a certain period of time — instead of cash. Real estate developers used the same system. It worked until it didn’t. When Evergrande defaulted on its debts, suppliers were left holding worthless promises to pay.
“This practice is seen as a potential cause of a larger crisis, similar to what happened with Evergrande,” Grandhi said.
The vows to speed up payments and the government calls to rein in the price wars, along with a rollback of some financing offers, point to an effort to reverse downward price expectations, said Jing Yang, a director at Fitch Ratings who focuses on the auto industry.
“We may watch how effectively these measures are in reversing the price trend and how would that affect EV demand in the coming quarters,” she said.
Bank of America has released its latest App Store performance data, and observed that while revenue is growing faster than downloads, users are shifting how they spend their money. According to the report (via Investing.com), which cited SensorTower data, global App Store revenue rose 12% year over year in June, while downloads were up just
03 July 2025 Read next The regions and technology pushing public EV charging forward 02 July 2025 Read next Monthly Market Update: Will European residual values continue to fall in 2025? 01 July 2025 Read next How is used-vehicle retail changing? 30 June 2025 Europe’s used-car market is under pressure from numerous shifting dynamics. What
In June 2025, Tesla’s sales in Germany dropped by a staggering 60%, with only 1,860 vehicles sold compared to the previous year, according to the German road traffic agency KBA. Despite a robust 8.6% rise in overall battery electric vehicle (EV) registrations, Tesla’s decline highlights mounting challenges for the U.S. automaker in Europe’s largest car
More details have emerged concerning Samsung’s so-called tri-fold foldable phone. This thing is almost certainly real, and quite possibly imminent. Earlier this week we wrote that Samsung’s rumoured tri-fold phone could steal the show at Samsung Unpacked. Spec leaks suggest that Samsung is working on a new foldable with three hinges for a wider display,
Fresh anecdotal reports suggest that opting for Samsung’s online exclusive colours for the Galaxy S25 and other phones might not be in your best interests. For a number of years now, Samsung has offered an enticing reason to order its latest phones direct from its website: exclusive colour options. The likes of the Titanium Jadegreen
LOS ANGELES, United States: QY Research has recently published a research report titled, “Wireless Battery Management Systems for EV – Market Insights, Industry Share, Sales Projections, and Demand Outlook 2024-2030” assessing various factors impacting its trajectory. The global Wireless Battery Management Systems for EV market is carefully researched in the report while largely concentrating on
Cobalt Market The Global Cobalt Market Size reached US$ 17.12 billion in 2024 and is expected to reach US$ 29.86 billion by 2032, growing with a CAGR of 7.20% during the forecast period 2025-2032. The latest Cobalt market research report from DataM Intelligence delivers a comprehensive analysis of the global Cobalt Market landscape, highlighting emerging
HYDERABAD: Miscreants took advantage of the large crowds at the Balkampet Yellamma temple festival and kalyanotsavam on Tuesday, with more than 15 thefts reported in under 12 hours. The stolen items included mobile phones, gold chains, and purses-most of them belonging to women.Despite police deploying 600 personnel and installing 100 CCTV cameras for round-the-clock surveillance,
