From CNBC: 2025-06-10 14:15:00

At a used car market in Beijing, salesman Ma Hui expressed concerns about China’s electric vehicle industry engaging in a price war, led by BYD, impacting profits for brands and sellers like him. China’s trading partners and domestic sources criticize the industry for unsustainable competition, with fears of financial stress and declining worker incomes.

BYD faced backlash for significant price cuts on models, with discounts up to 34%, alarming high-profile auto executives. Chairman Wei Jianjun likened the situation to China’s property sector crisis, warning of a looming industry collapse. A government-backed group criticized automakers for initiating a harmful “price war,” calling for fair competition practices.

In Beijing, sellers revealed the practice of “zero mileage used cars” to boost sales figures, causing further strain in the market. Ma highlighted consumer reluctance to purchase amid intense competition and dropping prices. Concerns mount over the future of China’s electric vehicle industry as the race to the bottom intensifies.



Read more at CNBC: In China, fears grow of an EV financial crisis amid pricing war