BYD returns a home industry that gives alarm

The price war covering China’s electric vehicle industry has led to a level of unusual interference in Beijing and Beijing. Soothing can be started just to work.

For their efforts to prevent the entire Chinese government by the market leader Byd Co., the combination of an evil spiral, analysts, weak demand and compound, the combination of the combination of the combination of excessive brands and Forebe opponents will give the competitors to the Forebler. After the number of household producers, which began to shrink for the first time last year, the industry still uses the power of production.

The Chinese government sector is trying to minimize the sector sector for the “Rat Racing Competition” and Calls the heads of the main brands Beijing last week. Previous attempts to intervene have little success. At least, investors for investors will not look at several car manufacturers: BY, the largest victory from industrial consolidation has lost $ 21.5 billion since the day after Sharing in May.

“What you see in China is concerned, because there is a lack of demand and excessive price,” he saidJohn Murphya high car analyst Bank of America Corp. Finally, he said he would be “mass consolidation” to soak the power.

Railing discount for automatic employees Erodes gushing profit margins, brand value, and even good capitalized companies even in the main capital financial position. Low-precious and quality products can seriously damage the international reputation of China’s cars, a speech managed by the Communist Party. And this Knock BYD will come as models from BY to GEELY, ZEEKR and XPeng begin to collect accolades on the world stage.

Price drops for consumers may seem useful, but disguise deeper risks. Unexpected prices abandon long-term confidence – already complain about the social media of people, why there is a chance to reduce quality, safety and post-sales service when there is a chance car.

Last week, in terms of “self-regulation” and familiar with the issue, they should not keep the costs below or reduced the baseless prices. Issue zero distance The cars also arrived – vehicles that are in the operometers, are sold to the second-hand market in the second-hand market of odometer, salesmen are sold to the second-hand market.

Chinese cars were able to be reduced more aggressively than their foreign counterparts.

Murphy said that carers should just go out. “Tesla Probably there should be there to compete with those companies and understand what happened, but there is a lot of risk. “

Others, BYD, China’s No. 1 car brand, no doubt that he is guilty.

“It is known to everyone who is doing this,” said Jochen Siebert, Managing Director OJSC cars in Auto Consultancy OJSC. “They want a monopoly that everyone gave up.” BYD’s aggressive tactics, potential disposal of cars, increasing the concerns on the management problems and “compress the suppliers.”

The assessment mixture also occurs in front of an important extreme background. The use of medium production in China’s automotive industry was compiled in 2024 by 49.5% and Gasgoo Car Research Institute of Shanghai.

Alikhpartners emphasize the intense competition between the April Report, new energy producers or pure battery machines and companies that produce plug-in hybrids. In 2024, he saw the first consolidation between Sunday, 16 and Nev-dedicated stamps and 13 launchers.

“The Chinese car market is growing in more slowly, despite significantly. The automatic ones should put the most priority to catch more market share” Ron zhengThe global consultant said a partner in Roland Berger GmbH.

Jiyue Auto shows how fast things can change. A year later, the car manufacturer is supported by large names Zhejiang Geely Holding Group Co. And the technology giant Baidu Inc, reduced production and searching for fresh funds.

A dilemma for all carmakers, but especially smaller. “Once the leader is not following a costume, you can miss a price,” can you lose a chance to stay on the table, “” ConsultantZhang Yichaosaid. He added that the low-capacity use ratio of “fundamental fuel”, which is “rooted fuel”, is also under pressure from the uncertainty of its exports.

You can offer only a few relief to international markets to export more Chinese brands to push to find a speech for production.

“If the US market is completely closed and seeing Japanese and Korean carmakers, he can close very soon,” Siebert said. Russia, the largest export market last year, is now very difficult. I do not see Southeast Asia as an opportunity. “

Pressure of cost cutting also led analysts to express concernSupply Chain Financing Risks.

Last year, a price demand for one of the last year, was investigated how to use the supply chain to mask the car giant balloon debt. Accounting Report GMT ResearchBYD’s real net debt323 billion yuan ($ 45 billion), compared to $ 45 billion officially compared to $ 27.7 billion by the end of June 2024.

Pain is bleed on China’s nuclear network. There are dealer groups in two yearsHe got out of workThose who have both ond machines since April.

Last week, Beijing’s meeting was not the first attempt in ceasefire. Two years ago, in mid-2023, 16 large cars, including Tesla Inc., BYD and GEELYsigned a pactHe witnessed the Chinese car manufacturers’ Union to prevent “abnormal prices.”

During a day, CAAM, deleted one of the four liabilities, saying, not in accordance with the price of collateral, and he violated a principle of the nation’s antitrest laws.

Discount has not accelerated.

This story was first displayed Fortune.com

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