Overview

• BYD cut prices by up to 30 percent on 22 electric vehicle models in late May, prompting rivals to match deep discounts across China’s EV market.
• In June, BYD scaled back production at several domestic plants and postponed plans for new assembly lines to alleviate a surge in unsold inventory.
• State media and the transport ministry issued official cautions that unregulated price wars could erode profits throughout the EV supply chain.
• China’s EV production capacity is projected to hit 36 million vehicles by 2025, more than double the estimated 14 million in sales, stoking overcapacity fears.
• Analysts warn that with 20 percent of EV manufacturers carrying debt ratios above 70 percent, a significant industry shakeout could pave the way for German automakers to reclaim market share.