BYD Sparks China EV Price War with Broad Discounts

Chinese electric vehicle maker BYD has initiated significant price cuts of up to 35% across 22 models, including popular lines like the Seagull and Dynasty series, in an effort to reduce rising dealer inventories and boost sales. The discounts, available until the end of June 2025, have intensified an already fierce price war in China’s EV market, which features over 100 competing brands and has been described by industry leaders as unsustainable. BYD’s aggressive pricing strategy has led to a notable sell-off in Chinese EV stocks, with shares of BYD and competitors such as Li Auto, Nio, XPeng, Geely, and Great Wall Motors declining sharply. Despite the price cuts, BYD’s sales continue to grow strongly, with the company on track to sell over 5 million vehicles this year and having recently surpassed Tesla in European EV sales. Analysts warn that BYD’s move could trigger further price reductions from competitors, exacerbating financial pressures on smaller EV startups already facing significant losses. The discounts are aimed primarily at affordable models priced under RMB 150,000 ($20,890), and can be combined with government trade-in subsidies to further reduce consumer costs.