Chinese electric vehicle giant BYD saw its shares tumble nearly 8% following a sharp 30% drop in second-quarter profit, driven by an intensifying price war in China’s EV market. The company had slashed prices on 22 models including a 20% cut on its Seagull hatchback and a 34% reduction on the Seal hybrid sedan to boost sales amid fierce competition.
Analysts warn that BYD’s vehicle margins are under pressure, though the company may offset losses through higher sales volumes and stable battery costs. The broader market reacted with caution, as other automakers like Geely and Xpeng also posted declines.
Regulators and industry groups have voiced concern over “disorderly price wars,” urging manufacturers to avoid dumping vehicles below production cost. The China Association of Automobile Manufacturers issued a statement calling for fair competition and warning of long-term risks to the industry’s health.
(source cnbc.com)
—Agencies
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