BYD's Profit Margin Looks Quite Good Amidst Price War Allegations - CleanTechnica

The article addresses recent allegations of a "price war" in the Chinese electric vehicle (EV) market, focusing on BYD's pricing strategies. Despite claims from some automakers and scrutiny from China’s Ministry of Industry and Information Technology (MIIT) that BYD’s aggressive price cuts are destructive and unsustainable, evidence suggests otherwise. BYD has maintained a profit margin above 5% in Q1 2025, which is better than most quarters over the past decade, indicating that the company remains profitable even while lowering prices. This challenges the notion that BYD cannot make money at current price levels and supports the argument that cost reductions can be passed on to consumers without sacrificing profitability. The article also highlights that other Chinese automakers like Li Auto, Geely, and Xiaomi are turning profits in their EV segments, with some closing the profitability gap. BYD holds about 15% of China’s overall automotive market, which is highly competitive, and its market share is still smaller than some major