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Customers look at BYD electric cars in the Yantay in the Yantay, East China in Sahandong Province, April 10, 2025.
Stringer | AFP | Getty pictures
Beijing – China’s electric car market has just been fierce with the interior economy and even the consequences for the global car market.
Industrial giant Byd Been announced last week Discounts – About 30% or more – among a few Only low battery and hybrid models. Budget-friendly Seagull saw the compact car descending to 55,800 yuanes ($ 7,750).
Other large Chinese cars began after the costume.
“BYD’s action was more annoyed by the industry this time,” Zhong Shi said that analyst with Chinese car dealers, Mandarin in Mandarin, translated by CNBC.
“The industry is in a relatively large shock,” he said, “said the smaller cars were worried more than the ability to compete.
Industry has been a radiant place in an economy that sees more slow growth and consumer demand. Part of Beijing’s attempt to push the consumption includes a category covering subsidies for new energy vehicles, batteries and hybrid cars.
“The most recent car price competition emphasizes how the demand demand is the fuel deflation of the impact of the exhaustion,” said Robin Xing, Robin Xing, on Wednesday.
“There is an increasing rhetoric (more consumption), but the latest developments show that the latest developments remain intact,” he said. “So it’s likely to be reflected.”
China’s electric car market has already been in a price war over the past two years, Partial fuel by Tesla.
However, this time, traditional cars, including state owners, are feeling an important heat in connection with the share of new energy vehicles Half of the new cars Sold in China.
Last week, the chairman of the Great Wall Engines Wei Jianjun “Evergrande” warning The fast growing house industry is still needed to explode yet compared to the country’s swollen real estate sector. In an interview with May 23, the Chinese media openly individual sector in Outlet Sina
Once China’s real estate giant, Evergrande default with debt in late 2021 As the property market decreases after Beijing in Beijing’s high debt levels. Demand for homes also left the developer, who struggled to finance the construction of the rest of the pre-sold units, further tightened government rules.
As the Chinese media research rising in the financial situation of automers, BYD, on Wednesday, on Wednesday, the flow of money and the flowers was extremely pressure. The seller did not respond immediately to CNBC request for commentary for commentary in Shandong Eastern province. BYD referred CNBC to the Chinese media.
In the first years of years Supported by China’s State efforts to be a global leader In the developing electric vehicle industry, the Ministry of Finance has found at least five companies The government cheated on 1 billion yuan ($ 140 million). High-level policy encouraged the start of starting, only one handful of them survived.
19% price decrease in two years
In China, the average retail price for the last two years, 165,000 yuan ($ 22,900) this week, according to a Nomura report this week, the Authehome Research Institute was informed.
The report says that this last two years, more than 27% prices for hybrid or extension vehicles, more than 27%, the report has reached 21%. The following is the mean value below the traditional fuel, 18% of the price has been reduced.
On the contrary, it was the average price of a new car in the United States $ 48,699 in Aprilup about 1% two years ago, According to CNBC calculations of data from Cox Automotive. Last month, the average electric car was $ 59,255.
BYD’s latest price was not reduced In 200,000 yuan, such as the branch ship Han electric sedan, enter higher level models of the company priced around Yuan. Reuters drew attention to the latest model of HAN released in February About 10% cheaper than the previous versionaccording to their calculations.
In the early years, the Chinese Auto giant, supported by Warren Buffett, captured the market share in China with wide machines in various price points. This The company reported Last year, a net profit increase from 49% to 14.17 billion yen. Total current liabilities rose more than 60% to 57.15 billion yuan. Cash and money equivalents fell a slightly 102.26 billion yuan.
Price War to continue
Sunday expansion, the sale of new-digit sales in China only for sale in China, the sale of internal combustion engine, Ying Wang, Fitch Management Director, Apac corporate ratings, told journalists on Tuesday. He noted how the country’s auto market has not been grown since 2018, and this year is waiting for retail sales to increase only with low single digits.
Automatic workers will continue to use price discounts to earn a market share in China this year. Wang pointing to another choice, in addition to consumers, instead of asking for more payments for them, they must enter more features like advanced driver assistants.
Geely-supported Zeekr, said in March Release the advanced driver’s assistantTesla instructed customers for a similar feature. A month ago, BYD announced that driving opportunities for more than 20 from the machine models.
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In the last few months, the highest leaders of China called their efforts to eliminate the non-productive work contest known as “participation.” The term was noted in the annual work report of the Prime Minister, in March and the market regulator in a meeting called “Comprehensive” last week ‘Accounting’ competition“
However, mass efforts to prepare low-cost electric cars in China and move to other markets, increased the concern over the influence of other countries in the auto industry of other countries.
This The European Union has hit tariffs for import of Chinese-made electric cars After testing the companies used by government subsidies. The US also Used 100% tasks in Chinese-made electric carsIt is hoping to move, vehicles can enter the second largest car market in the world.
However, tariffs in the EU have a limited effect. In April BYD Outsold Tesla in Europe For the first time according to Jato dynamics. Tesla’s European Sales That month has plunged up to 49%According to the European Automobile Manufacturers’ Union.
– CNBC’s Bernice OO contributed to this report
