[Chinese EV manufacturer] BYD is facing growing challenges from an intensifying price war and a change in supplier payment regulations in China, raising market concerns about the company’s financial stability.
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BYD executive vice president Stella Li told Bloomberg in an interview on June 12 that the “very extreme, tough competition” in the Chinese EV market is unsustainable.
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Last October, the European Union imposed tariffs ranging from 17% to 35.3% on Chinese EVs (BYD: 17%, Geely: 18.8%, SAIC and others: 35.3%). China suggested setting minimum prices for the EVs it ships to the EU. Both sides are still negotiating the matter.
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That’s the point of the competitive Chinese EV market - to create efficient EV manufacturers that can make good EVs for low prices. Once competition has achieved the lowest cost, consolidation would occur and with it some form of state involvement to keep prices low.