From CNBC: 2025-05-29 03:22:00

Competition in China’s electric car market intensifies as BYD offers discounts up to 30%, prompting industry concern. Price war continues as new energy vehicles account for half of new cars sold in China. Automakers resort to price cuts and added features to boost sales in a stagnant market.

Average car prices in China drop 19% over two years, with hybrid and battery-only vehicles seeing steeper cuts. BYD’s lower-end model prices slashed, but higher-end models remain unaffected. Market share leader BYD reports 49% profit increase despite price cuts and increased liabilities.

Fitch analyst predicts Chinese auto market growth limited, expects continued price wars to gain market share. Automakers may offer free advanced features to attract consumers as sales growth remains sluggish. Geely-backed Zeekr offers free driver-assist system, contrasting with Tesla’s attempt to charge for the same feature. BYD introduces driver-assist tech to over 20 car models, aiming to enhance safety and convenience for drivers. China addresses “involution” in business competition, with concerns about the impact of lower-cost electric cars on global markets. EU and US impose tariffs on Chinese electric cars, affecting sales but BYD outsells Tesla in Europe.

Read more: China’s EV price war is heating up. What’s behind the big discounts?