A senior executive at BYD said the ongoing price war in China’s electric vehicle (EV) market is unsustainable, describing the current competitive climate as extreme and damaging to long-term industry health.
“It’s not sustainable. This is like very extreme, tough competition,” said BYD executive vice president Stella Li in an interview with Bloomberg News in London. “You have to survive, but this is not healthy.”
Li criticized rival automakers for replicating BYD’s vehicle launches and undercutting them on price. “We launch this model today, and two months later our competitors launch a similar model that is bigger but priced 10,000 to 20,000 RMB cheaper,” she said.
In May, BYD introduced price cuts of up to 30% on 22 models in a bid to maintain momentum toward its ambitious 2025 sales goal of 5.5 million vehicles — a 30% year-on-year increase. Despite the target, Deutsche Bank noted in a May 24 research report that BYD’s retail sales grew by only 15% year-on-year during the first four months of 2024.
The pricing strategy triggered a wave of similar discounts from other domestic EV manufacturers, including Chery, Leapmotor, and IM Motors, prompting concerns of an escalating race to the bottom. In response, the China Association of Automobile Manufacturers (CAAM) issued a statement on May 31 urging an end to “disorderly price wars,” which it said were hurting profit margins across the sector.
Despite the intense domestic competition, Li confirmed BYD remains committed to international expansion. She said the company plans to invest up to $20 billion in Europe over the next few years, targeting local production and brand establishment.
Li also clarified that BYD has no current plans to pursue partnerships with European carmakers, diverging from peers like Xpeng and Leapmotor, which have opted for joint ventures to ease market entry.