Mon, 01 Sep 2025

Mon, 01 Sep 2025 BYD shares slide as China's EV price war hits profits

The EV maker faces a crowed market, with rivals like XPeng and Telsa, which have all cut prices.

* Shares in BYD, a Chinese electric vehicle maker, fell by as much as 8% on Monday due to a drop in profit caused by a price war in China's car sector.
* The company reported a net profit of 6.4bn yuan ($900m) between April and June, down 30% from the same period last year.
* BYD cited "increased price competition" among Chinese EV brands as a major factor contributing to its decreased profits.
* The company is facing increased competition in China's crowded car market, with local rivals Nio and XPeng, as well as US carmaker Tesla, slashing prices to attract buyers.
* Competition in the sector has reached a "fever pitch", according to BYD, with industry malpractices such as excessive marketing also disrupting the market.
* EV makers have been offering subsidies and zero-interest loans to dealers and buyers, prompting warnings from Beijing about the impact on the economy.
* Average car prices in China have fallen by around 19% over the past two years.
* Despite significant sales abroad, BYD's earnings fell short of analysts' estimates for a modest increase.
* The company is targeting global sales of 5.5 million cars this year, but had sold just 2.49 million by the end of July.
* Experts say that even the leader of China's EV sector may not win from a price war, and that Beijing's push to end the price war may be tough due to past policies leading to an oversupply of Chinese EVs.
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