BYD’s Aggressive Price Cuts Spark EV Market Turmoil and Industry Backlash

BYD reported 382,476 vehicle sales in May 2025 following price reductions of up to 34%, with passenger vehicles accounting for 376,930 units. Fully electric models outsold plug-in hybrids for only the second time since early 2024, reaching 204,369 units versus 172,561 hybrids. The company has achieved 1.76 million sales year-to-date, progressing toward its 5.5 million annual target.

The dramatic discounts triggered a surge in showroom traffic, with Citi Research noting a 30-40% weekly increase in dealership visits. However, the MOVE also precipitated a decline in BYD’s stock and broader EV sector shares, forcing competitors to follow suit with their own price cuts.

China’s automotive industry association issued a rare public warning against ’disorderly price wars,’ citing compressed profit margins and intensified恶性 competition. While not naming BYD directly, the statement clearly referenced the company’s aggressive pricing strategy that has upended market dynamics.