A used car in Beijing in the market, salesman Ma Hui said that he is afraid of China Electrical vehicle industry Is in the race below.
EV producer, led by country market leader BideAre engaged in one Price of injury warDisappointing profits for brands, as well as sellers such as MA.
“We were all losing money last year,” Ma said about his fellow used car vendors in the market. “Many companies are making a lot of new energy cars.”
A byd dealership in Beijing on June 4, 2025.
CNBC
Chinese business partners have often accused the country Flood in global market With cheap Chinese EVS. These days, similar allegations are flying Within ChinaIncrease concerns about financial stress in the industry.
For example, the official Communist Party Paper, The People’s Daily published a comment on Monday, titled “The ‘Price War’ is nowhere in the automotive industry and has no future.”
Paper warned, “disorganized” value wars affected the entire ecosystem, affecting the entire ecosystem and there is a risk of fall in income for workers. ” “Long -term, this ‘bottom to bottom race’ competition is unstable.”
Byd is the most on fire after the announcement Price cut For many of its models in late May. Some discounts are standing as 34%. Its cheapest car, seal mini hatchback, now costs around $ 7,700 below $ 10,000.
The intensive value war has led the high-profile auto authorities to give a sound to the alarm-the industry is called “unhealthy” with the head of the secret wall motor.
In an interview with Chinese news outlet Sina finance On 23 May, Great Wall Motor Chairman Wei Jianjun attracted similarities for China’s Moribond property sector and its now bad poster child, Developer Evergrande.
He said, “A ‘Evergrande-Like’ crisis already exists in the automotive industry.” “It hasn’t burst yet.”
A government -backed industry group has also called for companies not to “dump” vehicles below the cost of production. In a statement, the China Association of Automobile manufacturers swipe a veil in Byd.
The group said, “A certain automaker has led to starting a significant price cuts and many companies have followed the suit, which has led to a new round of ‘price war’ nervousness.”
Byd rejected Wei’s comment as an alarm and said it believes in a fair competition in response to CAAM’s criticism.
Byd Seagull Mini-Hatchback on performance at Beijing dealership on 6 June 2025.
CNBC
In the indication of further stress, vendors in the car market used by Beijing told CNBC about an event, known as “zero mileage used cars”, which is to help auto manufacturers and dealers to increase sales volumes. This occurs when cars are registered and mounted and then sold, but never operated.
Ma said that he is worried about where the fierce competition is. He told CNBC that he looks at the impact of acute competition on consumers who are already shy in spending in the down economy.
“With such a price leaving, a lot of buyers can wait,” he said.
