Byd has opened a new price war in China. The fall of your actions confirms that it is a risky play

Remove muscle or a sign of weakness. That is what we ask ourselves when we see the last Byd movement in China where the company has applied aggressive discounts to its fleet. The movement has been rejected in the markets but shows that the company has strength to stir the market alone.

The discounts. Last May 23, Byd announced a significant reduction in its Chinese fleet. In total, 22 cars received discountsincluding the Byd Seagull, the cheapest electricity in the market and one of the company’s great hits in the country, saw its price another 20%.

It is the most striking example of discounts that began in April but have intensified in May. In some cases discounts of up to 34%have been established.

A drop in actions. The market response, however, has been clear: a drop of 13% of its actions. It is the figure we have since May 23 were announced the discounts. Investors have seen a sign of weakness or, in any case, greater difficulties in taking out performance from vehicles if prices fall so strongly.

And a high sales. 382,476 units. That is the number of units sold by byd last May 2025. It is the highest than we have been for the year and took the electric cars (204,369 units) above the plug -in hybrids (172,561 units), which did not happen since the beginning of 2024, they point out in Bloomberg.

The growth of BYD sales comes, without a doubt, promoted by the attractive discounts that the company has put in the last week of May that, remember, add to those of April. In the absence of weekly data, so that we get an idea, Carnewschina Collect the data from May 19 to 25. Those days, Byd put 53,320 units of electric cars on the market. The following manufacturer was Tesla with 10,970 units.

So? So, investors seem to be worried, among other things, about profitability. In fact, it is the Chinese association of car manufacturers itself that, without naming any manufacturer, has assured that “disorderly price wars intensify fierce competition, even more compressing corporate benefit margins,” according to Bloomberg.

The same medium ensures that regulators have given a touch of attention to the company for fear that unleashing a price war can be carried in front of its competition. He always requested, always according to the American media, “loyal competition” to manufacturers not to generate a monopolistic context.

An open war. What is clear is that with discounts, ByD opens a price war With the rest of the companies. At the moment, from Great Wall Motors they have assured that maintaining this path is the confirmation that we can attend the “automotive Evergrande”, in words collected by CNEVPOST.

Although, again, no concrete names were given, the association points directly to Byd that is one of the manufacturers that does not sell the most cars seems to have in the market. In fact, the media have also reported that regulators have summoned a meeting with manufacturers to work in The treatment of kilometer 0 vehicles.

Why has Byd opted for this? There are several reasons that explain why the Chinese company has undertaken an open race to reduce the prices of its cars.

1. It has a large stock of unsold cars to those who need to give way after Their own promises left them obsolete
2. Its great objective is to sell 5.5 million cars. That would force him to get into almost half a million monthly vehicles and he is not getting it at the moment
3. It is an opportunity to clean the market and get companies in competition. Your sales muscle allows you to press more than anyone in the market and take companies to a bankruptcy of which some analysts have not notified time.

Photo | Byd

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