China's EV Price War Intensifies as Automakers Push Suppliers for Cost Cuts

Leading carmakers like BYD and SAIC Motor are demanding supplier discounts, signaling ongoing fierce competition in the oversaturated market.

BYD, China's top EV maker, has requested a 10% price reduction from suppliers starting in 2025 to remain competitive in the crowded market.
SAIC Motor, another major automaker, has also asked suppliers for similar cost reductions, citing oversupply and challenging market conditions.
The EV price war, initiated by Tesla's price cuts in 2022, has significantly narrowed profit margins and driven industry consolidation in China.
Experts predict smaller EV startups and suppliers may struggle to survive as pressure to cut costs grows in an already saturated market.
Chinese automakers are increasingly targeting international markets like Thailand, Mexico, and Brazil to offset domestic challenges, as trade barriers in wealthier regions limit expansion opportunities.