WrittenBy: Sam
BYD shares fell 8.3% after massive price cuts, dragging down Li Auto, Geely, and Great Wall Motor by over 5% in Hong Kong trading.
BYD cut prices on 22 EV & hybrid models by up to 34%, reigniting China’s brutal auto price war amid slowing demand.
Investors fear shrinking profits as automakers sacrifice margins to clear inventory, worsening financial losses.
Dealer stockpiles hit 3.5M vehicles—57 days' supply—the highest since 2023, forcing drastic discounting.
EV sales growth is slowing despite record volumes, as China’s economic slump weakens consumer spending.
Tesla, NIO, and XPeng also slashing prices, squeezing smaller players in a battle for market share.
Price wars are eroding profits, with weaker brands at risk of bankruptcy or forced mergers.