China’s electric vehicle (EV) market is experiencing a sharp price drop as the country’s EV makers fight for dominance. BYD, a key rival to Tesla, has cut prices on 22 models until the end of June. The discounts include its entry-level Seagull EV, which now costs $7,750, down from $9,700. This move comes despite BYD reporting booming sales and selling more electric vehicles than Tesla in Europe this year.
The price war, sparked by Tesla last year, has left many industry experts warning that the intense competition is unsustainable. Volkswagen CEO Thomas Schäfer has described it as “ruinous” while Xpeng’s boss warns that most Chinese car companies will not survive the next decade.
As BYD continues to expand its global presence, the company’s price cuts are likely to put further pressure on Tesla and other EV makers. With sales on track to reach over 5 million cars this year, BYD is poised to become a major player in the European market. The company’s latest move signals that it will stop at nothing to win market share, leaving investors worried about the long-term implications of China’s intense price war.
Source: https://www.businessinsider.com/byd-price-cuts-chinese-ev-makers-stock-prices-geely-tesla-2025-5