Latest news with #BYD
The Star
5 hours ago
- Automotive
- The Star
China auto price war fuels industry shakeout fears
AN intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Shares of China's largest automakers sank on Monday after Chinese electric-vehicle (EV) giant BYD offered fresh discounts across more than a dozen models, and an executive at another car company fretted openly about the country's deepening price war. BYD's moves cut the starting price of its cheapest model, the battery-powered Seagull hatchback, to 55,800 yuan (US$7,765), from nearly US$10,000. The BYD price cuts, along with other developments, signal a potential tipping point, where weaker players can no longer sustain deepening losses from the downward spiral on prices, said Tu Le, managing director of Sino Auto Insights, an advisory firm. 'This points to a bloodbath later this year,' he said. 'This could be the first domino that would finally put pressure on weaker players – startups like Neta and Polestar – that have been teetering.' Last Friday, the chairman of Great Wall Motors, Wei Jianjun, warned that China's auto sector was in an unhealthy state, with pricing pressure hammering the bottom lines of car companies and suppliers. He even drew a parallel to Evergrande, the Chinese property developer that was liquidated last year after a major debt crisis. 'Now, Evergrande in the automobile industry already exists, but it has not collapsed,' he told Sina Finance in an interview. In another sign of stress in the market, Reuters reported that Chinese commerce regulators are examining a growing phenomenon that has also strained the industry: sales of 'used cars' that are essentially new cars with zero miles. The tactic is seen as a way for automakers and dealers to hit aggressive sales targets, a person familiar with the matter told Reuters. A slew of startup companies have piled into China's car market over the past decade, drawn by the burgeoning EV sector. The market has grown crowded with cut-throat price competition and most companies sustaining heavy losses. Of the 169 automakers operating in China today, more than half have less than 0.1% market share, according to data from research firm Jato Dynamics. The crowded field is reminiscent of the US auto sector in the early 20th century, when more than 100 companies vied with big players such as Ford, before the industry consolidated. Le said the price war has lasted roughly three years. Carmakers once enjoyed a premium for advanced features such as driver-assistance systems that take control of steering and braking in certain situations, but now more have been offering these as part of the sticker price. Last week, China's state planner cautioned that competition in some industries was getting too heated, with some companies even selling their cars below cost, disrupting fair competition. Last Friday, Wei, the Great Wall chairman, warned the prolonged price war was harming the automotive supply chain. Some suppliers are at risk of going under because of pressure from car companies to lower their prices, he said. 'Some products have been reduced from 220,000 yuan to 120,000 yuan in the past few years,' he said, without naming companies. 'What kind of industrial products can be reduced by 100,000 yuan and still have quality assurance?' Still, predictions of consolidation in China's car market have gone on for years, but the field has only grown, said Michael Dunne, a consultant who closely follows the China auto industry. 'BYD's price cuts will drive out some of the weaker players,' he said. 'But for every casualty here comes a new Xiaomi or Huawei barrelling into the arena.' — Reuters Norihiko Shirouzu writes for Reuters. The views expressed here are the writer's own.
Miami Herald
9 hours ago
- Automotive
- Miami Herald
Veteran fund manager sounds the alarm on Tesla
Longtime fans of Elon Musk's pioneering electric vehicle company Tesla (TSLA) have certainly seen it hit some impressive highs over the last 10 years. Unfortunately, now the EV maker is facing some major lows. It reported a 20% drop in revenue on April 22 during its first quarter earnings call, and its stock has taken some concerning dips this year. Don't miss the move: Subscribe to TheStreet's free daily newsletter The company's net income also plummeted 71% to $409 million, which is a far cry from the $1.39 billion it made a year ago. CEO Elon Musk quickly announced he would step back from all work with The Department of Government Efficiency (DOGE) to refocus on Tesla, but the damage was already done - or at least some experts in the space seem to think so. Related: Elon Musk faces growing legal Twitter/X problem Musk has since said he intends to go back to focusing on his companies "24/7," saying in a tweet on May 25: "Back to spending 24/7 at work and sleeping in conference/server/factory rooms. I must be super focused on X/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out." While that sounds as if Musk is finally ready to give his own companies his all again, one veteran fund manager says that it's simply not enough to make up for what's happened in his absence. The Future Fund manager Gary Black reshared Musk's tweet about 24/7 work in the early hours of May 26, commenting that activity from Chinese EV maker BYD is already casting a shadow over Tesla that we can expect to see more of this coming week. "$BYDDY -7.7% in Asia (1211 HK) after announcing temporary price cuts on 22 different EV models within its Dynasty and Ocean franchises that will run through June 30. The price cuts range from 6-20% and will likely be matched by Chinese EV competitors," Black said. "This could weigh down $TSLA when it resumes trading Tuesday, although SPX and NDX futures were +1% on Trump's decision to extend a proposed 50% increase in EU tariffs until July 9." Related: Analyst sets eye-popping Tesla stock price target However, when it comes to Musk's renewed efforts, Black had a few harsh words to say about that. "We view Elon's announcement that he will return 24/7 to $TSLA X and xAI as a non-event, since it won't likely change TSLA's declining delivery trajectory (FY'25 WS deliveries now 1,701K -5% YoY)," Black said. "We remain concerned the new more affordable TSLA model due out in 3Q will be a scaled-down Model 3 or Model Y that is not a new form factor and therefore will not increase TSLA TAM," he continued, referring to the budget Tesla Musk has promised in the past but since postponed. Some folks in the comments of the tweet pushed back on Black's take, such as X user Jeff Lutz, who said, "I don't understand the BYD price cuts weighing on TSLA? I'm sure it's possible to some extent but I thought dynasty and ocean series already sell at ATPs well below Tesla 3/Y… meaning Tesla has nothing at these tiers to counter w/a discount to match BYD." "From what I'm seeing, they just have a ton of channel inventory and appear to be under selling relative to their 30% growth targets," Lutz continued. "It's all anecdotal as nothing basic is reported on besides sales … DB and Citi believe they have an inventory problem, too…" Black responded to the tweet, saying, "I hope you're right. We'll find out tomorrow. Usually price cuts impact all players, especially when the market leader - here BYD - [initiates] the price cut. In most situations, others follow, or they lose short-term volume." "Let's hope $TSLA doesn't follow the price cuts, because as you acknowledge, BYD has a ton of old inventory to move in front of refreshed models that will include self-driving for free," he added. Related: Leaked Tesla policy should infuriate Tesla loyalists The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Mid East Info
11 hours ago
- Automotive
- Mid East Info
Al-Futtaim Electric Mobility Launches the All-New BYD SEAL 7 DM-i Hybrid in the UAE - Middle East Business News and Information
Featuring BYD's next-gen DM-i platform, the SEAL 7 sets a new standard for plug-in hybrid performance and sustainable driving in the UAE Dubai, UAE – May 2025 – Al-Futtaim Electric Mobility Company (AFEM), a leading force in the UAE's transition to sustainable transportation, has officially launched the BYD SEAL 7 DM-i Plug-in Hybrid Sedan. As the flagship D-segment model in its category, the SEAL 7 DM-i sets a new benchmark for hybrid electric vehicles, offering a refined blend of premium design, extended range, and advanced technology tailored to the needs of the modern UAE driver. With growing demand for flexible electrified solutions, the launch of the SEAL 7 DM-i marks a significant milestone in AFEM's mission to accelerate clean mobility in the country. Positioned as the largest plug-in hybrid sedan in its segment, the vehicle features a length of 4,980 mm and a 2,900 mm wheelbase, offering superior interior space and a luxurious driving experience. Powered by BYD's fourth-generation DM-i (Dual Mode – Intelligent) platform, the SEAL 7 DM-i combines a 17.6 kWh Blade Battery with intelligent hybrid power management. Drivers can expect up to 100 km of pure electric range and a total driving range of over 800 km (WLTP), with ultra-low fuel consumption. The system seamlessly integrates electric and hybrid power, delivering smooth and silent EV starts, regenerative braking, and advanced safety through BYD's proprietary D-Pilot driver assistance system. The SEAL 7 DM-i also brings a new design language inspired by BYD's Ocean Series, featuring a sleek coupe fastback profile, panoramic sunroof, and distinctive dot-array taillights. Inside, the cabin has been crafted to rival traditional luxury sedans, with wrap-around ventilated leather seating, a high-definition 15.6' rotating infotainment screen, 13 airbags, and enhanced spaciousness that ensures both comfort and safety. Hasan Nergiz, Managing Director of Al-Futtaim Electric Mobility Company, commented on the launch: 'Our journey is rooted in the belief that electric mobility is the future, and plug-in hybrid vehicles play a vital role in bridging that transition for UAE drivers. With the BYD SEAL 7 DM-i, we offer a solution that delivers full EV capability for everyday driving while retaining the flexibility of hybrid power for longer journeys.' The launch of the SEAL 7 DM-i comes as Al-Futtaim Electric Mobility continues to expand its BYD showroom network across the UAE, with locations in Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, and Al Ain. AFEM has also developed a comprehensive ecosystem for new energy vehicles, including aftersales support, mobile services, customer financing, and nationwide EV charging infrastructure through its CHARGE2MOVE platform. This latest model underscores Al-Futtaim's long-term commitment to leading the electrification of transport in the UAE, offering practical, premium, and sustainable solutions that meet the evolving expectations of today's drivers. Test Drive the Future Today The BYD SEAL 7 DM-i Plug-in Hybrid Sedan is now available for test drives and pre-orders at all BYD showrooms across the UAE.
Yahoo
11 hours ago
- Business
- Yahoo
China's BYD is sued over 'slave-like' labor conditions
One day after BYD (BYDDY) overtook Tesla's (TSLA) market share in Europe, the Chinese EV maker and two of its contractors were sued by the Brazilian government for subjecting 220 Chinese workers in the South American country to 'slavery-like conditions.' The construction site of a new BYD factory in Camacari, in the northeastern Brazilian state of Bahia, was set to open in March 2025, but was shut down by the government there in December 2024, citing 'degrading' conditions. Those conditions included armed surveillance, beds without mattresses, one toilet for 31 workers, unrefrigerated food, workers' passports and salaries being withheld, and exhaustive work without rest. Under Brazilian law, the definition of slavery includes debt bondage and conditions that violate workers' dignity. BYD and the two contractors are being sued for $45.5 million. The Chinese citizens entered the country 'irregularly,' says Brazil's labour ministry, 'with a work visa for specialized services that did not correspond to the activities actually developed in the work.' Brazil is BYD's largest overseas market. BYD, which stands for 'Build Your Dreams,' opened a São Paulo factory in 2015 where it builds chassis for electric buses. The Camacari plant was to be BYD's first full-fledged EV plant outside of Asia. Fabio Leal, a deputy labor prosecutor, told Reuters in December that the ministry had been in talks with BYD and the two contractors after the plant was shut down, but that no agreement could be found. That month, BYD claimed that reports of poor conditions were intended to smear China and Chinese brands, and that calling their employees 'enslaved' insulted their dignity. For the latest news, Facebook, Twitter and Instagram.
New Straits Times
11 hours ago
- Automotive
- New Straits Times
China car market price war stokes fears of industry shake-out
AN intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Shares of China's largest carmakers sank on Monday after electric-vehicle (EV) giant BYD offered fresh discounts across more than a dozen models. Also, an executive at another car company voiced concern about the country's deepening price war. BYD's moves cut the starting price of its cheapest model, the battery-powered Seagull hatchback, to 55,800 yuan, from around 70,000 yuan. The BYD price cuts, along with other developments, signalled a potential tipping point, where weaker players could no longer sustain deepening losses from the downward spiral in prices, said Tu Le, managing director of Sino Auto Insights, an advisory firm. "This points to a bloodbath later this year," he said. "This could be the first domino that would finally put pressure on weaker players — startups like Neta and Polestar — that have been teetering." Last Friday, Great Wall Motors (GWM) chairman Wei Jianjun warned that China's auto sector was in an unhealthy state, with pricing pressure hammering the bottom lines of car companies and suppliers. He even drew a parallel to Evergrande, the Chinese property developer that was liquidated last year after a major debt crisis. "The Evergrande in the automobile industry already exists, but it hasn't collapsed yet," he told Sina Finance. In another sign of stress in the market, Reuters reported that regulators were examining a trend straining the industry: sales of "used cars" that were essentially new cars with zero miles. The tactic was seen as a way for carmakers and dealers to hit aggressive sales targets, said a person familiar with the matter. The Hong Kong-listed shares of BYD Co Ltd closed 8.6 per cent lower on Monday, while Geely Auto fell 9.5 per cent. Others, such as Nio and Leapmotor, closed between three per cent and 8.5 per cent lower. A slew of startup companies have piled into China's car market over the past decade, drawn by the burgeoning EV sector. The market has grown crowded with cutthroat price competition and most companies sustaining heavy losses. Of the 169 carmakers operating in China today, more than half have less than 0.1 per cent market share, according to data from research firm Jato Dynamics. The crowded field is reminiscent of the United States auto sector in the early 20th century, when more than 100 companies competed with giants such as Ford, before eventual consolidation. Le said the price war has lasted roughly three years. Carmakers once enjoyed a premium for advanced features such as driver-assistance systems that take control of steering and braking in certain situations, but now more have been offering these as part of the sticker price. Last week, China's state planner cautioned that competition in some industries was getting too heated, with some companies even selling their cars below cost, disrupting fair competition. On Friday, Wei, the GWM chairman, warned the prolonged price war was harming the automotive supply chain. Some suppliers were at risk of going under because of pressure from car companies to lower their prices, he said. "Some products have been reduced from 220,000 yuan to 120,000 yuan in the past few years," he said, without naming companies. "What kind of industrial products can be reduced by 100,000 yuan and still have quality assurance?" Still, predictions of consolidation in China's car market had gone on for years, but the field had only grown, said Michael Dunne, a consultant who closely follows the China auto industry. "BYD's price cuts will drive out some of the weaker players," he said. "But for every casualty here comes a new Xiaomi or Huawei barrelling into the arena."
