BYD Navigates Domestic Price Wars Amid Global Expansion Push

BYD's aggressive pricing strategy in China's cutthroat EV market has come at a cost. The automaker reported a 14% revenue increase to ¥201 billion year-over-year, but shrinking margins tell the real story. Gross margin slipped to 18% from 18.8% as discounting eroded profitability—a trend plaguing the entire industry.

The Shenzhen-based company has slashed prices on over 20 models this year, with discounts reaching 34%. While these moves boosted volumes, they've triggered a race to the bottom that's already claimed smaller EV startups. Regulators are now stepping in, warning that uncontrolled price wars risk damaging supply chains and China's EV reputation globally.

Meanwhile, BYD continues its overseas expansion, attempting to offset domestic margin pressures through international growth. The paradox is clear: the same company fueling China's price war now seeks calmer waters abroad.