Chinese Automakers Sent To The Principal's Office Over EV Price War Spat - CleanTechnica

The Chinese electric vehicle (EV) market has been embroiled in a prolonged and intense price war over the past several years, causing significant tension among major automakers. Geely chairman Li Shufu criticized the ongoing "cutthroat price competition," calling it a "race to the bottom" and advocating instead for competition based on technology, quality, service, brand, and ethics. Great Wall Motor has been particularly vocal against BYD, accusing the latter of unfair pricing tactics and reporting BYD to Chinese regulators over alleged emissions standard violations related to two of BYD’s popular hybrid models. Great Wall claims these models used non-pressurized fuel tanks, leading to quicker fuel evaporation, and Geely has publicly supported Great Wall’s stance. In response to the escalating price war and regulatory concerns, China’s Ministry of Industry and Information Technology (MIIT) reportedly intervened by convening a special meeting with automakers to call for an end to the price battles. The ongoing conflict has also triggered a selloff in Chinese automaker stocks, reflecting market unease. The article raises the question of how much of the price decline in the Chinese EV sector is due to aggressive price cutting versus natural cost reductions driven by technological innovation, economies of scale, and industry maturation. While Geely and Great Wall see the price war as harmful and artificial, BYD argues that its competitive pricing stems from faster innovation and better consumer responsiveness. The situation remains fluid, with industry watchers awaiting further developments.