BYD has fired another shot in China’s increasingly competitive electric vehicle market by cutting prices on 22 models, including its entry-level Seagull EV. This move has triggered a sharp decline in shares of Chinese EV manufacturers, with BYD’s stock closing 8.6% lower in Hong Kong. Other affected companies include Geely, Great Wall Motors, Xpeng, Nio, and Li Auto, with share prices falling between 5-9%.
Key Price Cuts and Market Reaction
The price reductions, effective until the end of June, have seen the BYD Seagull’s price drop from 69,800 yuan ($9,700) to 55,800 yuan ($7,750). This significant discount has raised concerns among investors about the sustainability of China’s EV market, which is characterized by intense competition among around 100 brands.
Industry Concerns and Future Outlook
Industry figures have warned that the ongoing price war, initially sparked by Tesla, is unsustainable. Volkswagen CEO Thomas Schäfer previously described the situation as “ruinous,” while Xpeng’s boss cautioned that most Chinese car companies may not survive the next decade. Despite these concerns, BYD’s sales have boomed this year, with the company on track to sell over 5 million cars and having outsold Tesla in Europe for the first time in April.
Global Expansion
BYD has also unveiled the Dolphin Surf, the European version of the Seagull, which will be available in 15 European markets starting at 23,000 euros ($26,000). This represents a significant price advantage compared to Tesla’s cheapest model. The development underscores BYD’s aggressive expansion strategy in both domestic and international markets.
