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Japan Today
15 hours ago
- Automotive
- Japan Today
Chinese automakers get stern 'price war' warning after discount spree
BYD was not singled out by name, but a leading China automakers group warned of a "price war" after the company cut prices on nearly two dozen models A top industry group had a stern rebuke Saturday for automakers fueling a "price war", a week after Chinese EV giant BYD announced sweeping trade-in discounts, with multiple competitors following suit. "Since May 23, a certain automaker has taken the lead in launching a substantial price drop campaign... triggering a new round of 'price war' panic," the China Association of Automobile Manufacturers (CAAM) said in a statement posted to its WeChat account. The group warned that such "disorderly" competition would "exacerbate harmful rivalry" and hurt profit. The statement, dated May 30, did not single out any company by name, but on May 23, BYD announced it was offering big trade-in discounts on nearly two dozen makes, offering discounts of up to 34 percent. Its cheapest model, the smart-driving Seagull, now goes for a starting price of 55,800 yuan ($7,800), down from 69,800 yuan, with a trade-in. Days later, Stellantis-backed Chinese EV startup Leapmotor announced similar discounts on two "entry-level" models through June 8. Geely Auto announced Friday limited-time trade-in subsidies for 10 models, with its X3 Pro going for the lowest starting price of 44,900 yuan. But there is growing domestic criticism against what the autos association called "involution" -- a popular tag used to describe the race to outcompete that ends up nowhere. The CEO of China's Great Wall Motor, whose annual revenue was roughly a quarter of BYD's, compared it to the start of China's years-long housing slump triggered by the 2021 default of property giant Evergrande. "Evergrande in the auto industry already exists," Wei Jianjun said this month in an interview with Chinese outlet Sina Finance. "I hope that... all these years of hard work will not go to waste." Beijing has poured vast state funds into the electric vehicle sector, supporting the development and production of less polluting battery-powered vehicles. But China's automakers association on Saturday warned its goliaths to play fair. "Leading companies must not monopolise the market," the CAAM statement said. It added that "with the exception of lawful discounting, companies must not sell products below cost nor engage in misleading advertising". Such behavior disrupted the market and harmed both consumer and the industry, it said. An unnamed official from China's Ministry of Industry and Information Technology added that price wars "produce no winners and no future", the state-backed Global Times reported Saturday. © 2025 AFP
France 24
a day ago
- Automotive
- France 24
Chinese automakers get stern 'price war' warning after discount spree
"Since May 23, a certain automaker has taken the lead in launching a substantial price drop campaign... triggering a new round of 'price war' panic," the China Association of Automobile Manufacturers (CAAM) said in a statement posted to its WeChat account. The group warned that such "disorderly" competition would "exacerbate harmful rivalry" and hurt profit. The statement, dated May 30, did not single out any company by name, but on May 23, BYD announced it was offering big trade-in discounts on nearly two dozen makes, offering discounts of up to 34 percent. Its cheapest model, the smart-driving Seagull, now goes for a starting price of 55,800 yuan ($7,800), down from 69,800 yuan, with a trade-in. Days later, Stellantis-backed Chinese EV startup Leapmotor announced similar discounts on two "entry-level" models through June 8. Geely Auto announced Friday limited-time trade-in subsidies for 10 models, with its X3 Pro going for the lowest starting price of 44,900 yuan. But there is growing domestic criticism against what the autos association called "involution" -- a popular tag used to describe the race to outcompete that ends up nowhere. The CEO of China's Great Wall Motor, whose annual revenue was roughly a quarter of BYD's, compared it to the start of China's years-long housing slump triggered by the 2021 default of property giant Evergrande. "Evergrande in the auto industry already exists," Wei Jianjun said this month in an interview with Chinese outlet Sina Finance. "I hope that... all these years of hard work will not go to waste." Beijing has poured vast state funds into the electric vehicle sector, supporting the development and production of less polluting battery-powered vehicles. But China's automakers association on Saturday warned its goliaths to play fair. "Leading companies must not monopolise the market," the CAAM statement said. It added that "with the exception of lawful discounting, companies must not sell products below cost nor engage in misleading advertising". Such behaviour disrupted the market and harmed both consumer and the industry, it said. An unnamed official from China's Ministry of Industry and Information Technology added that price wars "produce no winners and no future", the state-backed Global Times reported Saturday.
Time of India
2 days ago
- Automotive
- Time of India
BYD executive says no 'Evergrande' risk among mainstream Chinese automakers
An executive at top Chinese electric vehicle manufacturer BYD said on Friday there was no "Evergrande" risk among mainstream Chinese automakers. Last week, Great Wall Motor Chairman Wei Jianjun said the country's auto industry had its own Evergrande , referring to the debt-laden developer that became the centre of a liquidity crisis in China's property sector. Wei's critical comments were a reminder of the risks facing the industry, Zhu Huarong , chairman of state-owned automaker Changan told an annual shareholder meeting on Tuesday, according to local media. But writing on Weibo, Li Yunfei, BYD's general manager of branding and public relations, said Wei's comments were "astonishing". Li said he felt "puzzled, angry and amused" by the articles, comments and videos on social media that alluded to BYD as being the EV industry's equivalent of Evergrande. BYD is investigating the "legal responsibility" of relevant parties who had "viciously" spread the hostile comments, Li said. Great Wall Motor did not immediately respond to a request for comment. China's EV makers have been locked in a bruising domestic price war since Tesla cut showroom prices in 2023. They are also competing against Elon Musk's carmaker in the global market where BYD has emerged as Tesla's closest rival. Tensions between Great Wall Motor and BYD erupted into the open that year after the Hebei-based automaker announced it had filed a report with China's regulators against BYD, claiming its rival's two top-selling hybrid models did not meet emissions standards. Later that year, BYD made a patriotic call for China's auto industry to band together and "demolish the old legends" of the global car market, drawing a rebuke from Great Wall Motor. "At such a critical moment, how can Chinese automakers be together?" Wang Yuanli, the then chief technology officer at Great Wall Motor, posted on his Weibo account. "If we only talk about being together but keep our bitterness in our hearts, it would be better to have the fight first."
Epoch Times
3 days ago
- Automotive
- Epoch Times
Fierce Price War Batters China's Auto Stocks as Industry Leader Warns of ‘Evergrande-Like' Crisis
A fresh wave of steep price cuts by BYD sent shockwaves through China's auto sector, raising fears of escalating price wars and causing the automaker's stocks to tumble. At the same time, an industry leader's warning about the emergence of an 'Evergrande' within China's auto industry—referencing the once-dominant, now debt-ridden property developer that is facing court-ordered liquidation—quickly went viral on Chinese social media, amplifying concerns about financial instability.
The Star
4 days 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.
