Overview

• BYD’s aggressive price cuts have boosted its market share but erased US$21.5 billion in market value since late May
• Regulators convened executives in Beijing last week to urge self-regulation and curb ‘‘rat race competition’’ among EV makers
• Production capacity utilization in China’s automotive sector dropped to 49.5 percent in 2024, heightening risk of massive industry consolidation
• Dealership groups in two provinces have shut down under intense pricing pressure, exposing financial strain on smaller players
• Export ambitions are under threat as the US market remains closed and Japan and Korea signal resistance to Chinese EV imports