Tensions between two of China’s top automakers flared on Friday after a BYD executive pushed back strongly against comments by Great Wall Motor’s chairman, who described the country’s auto industry as “unhealthy” amid a deepening price war.
The public dispute followed remarks from Wei Jianjun, chairman of Great Wall Motor, who last week likened instability in China’s auto sector to the crisis that brought down property giant Evergrande. While he stopped short of naming any companies, his comments sparked investor concerns, sending shares in automakers including BYD, Nio, and Xpeng sharply lower this week.
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Li Yunfei, general manager of branding and public relations at BYD, dismissed the implication of an Evergrande-style crisis at any major automaker, calling the comparison “alarmist” and speculative. “I don’t understand the intent behind linking BYD to Evergrande,” Li said in a post on Weibo, where he defended the company’s financials, including its 70% debt-to-asset ratio and over 580 billion yuan in debt.
Li justified BYD’s balance sheet by comparing it to international firms such as Ford, Boeing, and Toyota, noting that BYD has expanded aggressively while others have stagnated. He added that the company has submitted evidence to authorities and intends to pursue legal action against online users who spread the speculation.
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China’s electric vehicle market remains mired in a bruising price war, with automakers cutting prices to gain market share. BYD and others introduced new discounts this week, despite mounting concerns about profitability across the supply chain.
At least one industry peer supported Wei’s remarks. Changan chairman Zhu Huarong said during a shareholder meeting that Wei’s warnings were a necessary reminder of risk exposure in the market, according to Chinese media.
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The spat is the latest in a series of public clashes between BYD and Great Wall Motor. In 2023, Great Wall accused BYD of emissions violations, prompting an investigation. BYD later called for Chinese automakers to unite and “demolish the old legends” of the global auto industry—a remark that also drew criticism from Great Wall.