Chinese automakers’ stock value plummets sharply
According to webangah News Agency,BYD’s aggressive discounts—ranging from 10% to 34% on 22 models from its Dynasty and Ocean series—sparked fears of renewed price wars in China’s auto industry. The promotions will run until June 30.
BYD shares plunged 8.6% in Hong Kong and 5.9% in Shenzhen during Monday’s trading session. competitors suffered steeper losses: Geely Auto dropped 9.5%, while Zhejiang Leapmotor Technology fell 8.45%. Li Auto and Nio saw declines of 3.2% and 3.0%, respectively.
A Weibo post by Zhang zhou, head of BYD’s ocean series sales, revealed the hatchback Seal model now starts at 55,800 yuan ($7,700), down from 69,800 yuan previously. Similarly, Lu Tian, head of the Dynasty series, announced the plug-in hybrid Qin sedan now begins at 63,800 yuan, reduced from 79,800 yuan.
“This move reignites concerns about price competition returning to the auto market,” saeid Joel Ying, Nomura’s automotive analyst. He noted mass-market rivals like Geely and Leapmotor—direct competitors to BYD’s discounted models—were particularly vulnerable to share price erosion.
Chinese automakers have long used price cuts to gain global market share. The sector faced a year-long electric vehicle (EV) price war from 2023-2024 amid oversupply and weak consumer demand. In April 2024 alone over 40 EV models saw price reductions or incentives—the steepest decline in China’s automotive history.
