Following another round of price cuts last month, BYD is now facing backlash from top Chinese officials and regulators. China warned BYD’s latest cuts are triggering “price war panic,” and that it’s now getting out of hand.
BYD’s EV price cuts lead to new price war concerns
BYD is already known for its ultra-affordable electric cars. Its top seller, the Seagull EV, starts at 69,800 yuan, or just under $10,000.
After cutting prices again on May 23, the Seagull’s starting price is now just 55,800 yuan, which is about $7,800. The mini electric car wasn’t the one either. BYD introduced significant discounts, up to 34% off, across 22 of its vehicles.
The lower prices have pressured other automakers to follow suit, which officials in China are now warning has gone too far.
Although it didn’t single out BYD, the China Automobile Manufacturers Association said in a statement (via Bloomberg) that an automaker’s recent price cuts are “triggering a new round of price war panic.”
The statement warned that “Disorderly price wars intensify vicious competition, further compressing corporate profit margins.”
In recent days, several media outlets published reports calling for automakers to stop the discounts or risk low-quality products. The warnings claimed the lower prices could damage the “Made-in-China” reputation it’s working to establish.
Chinese automakers’ share prices have fallen sharply since BYD slashed its prices, including those of NIO, XPeng, Geely, and Li Auto.
Electrek’s Take
Is BYD taking it too far? The company sold nearly 377,000 passenger vehicles last month, up 14% from May 2024. Its overseas sales hit another record with over 89,000 NEVs sold, marking six straight months of growth.
BYD registered more vehicles in Europe and the UK last month as it expands its lineup. Last month, it launched its low-cost Seagull under the name Dolphin Surf, with prices starting at 23,000 euros ($26,000) and a WLTP driving range of 220 km (137 miles). Upgrading to the longer-range variant, with 507 km (315 miles) range, costs 24,990 euros.
With another 204,369 fully electric vehicles handed over in May, BYD has now sold nearly 816,500 EVs through the first five months of 2025, up 40% compared to the same period last year.
We should learn more soon about how BYD’s price cuts are impacting the automakers in the leading EV market, as financials, sales, and more information are released. Stay tuned for more.
