*Chinese officials summoned the heads of major electric vehicle makers, including BYD Co., to Beijing earlier this week to address concerns about the long-running price war, according to people familiar with the matter. *
*The meeting was hosted by the Ministry of Industry and Information Technology, the market regulator and the top economic planning agency, said the people, who asked not to be identified discussing private information. The gathering was attended by senior executives from more than a dozen manufacturers that also included Zhejiang Geely Holding Group Co. and Xiaomi Corp., the people said. *
*Officials told EV makers to “self-regulate,” and that they shouldn’t sell cars below cost or offer unreasonable price cuts. *
The warnings come after BYD kicked off the latest round in the price war late last month with discounts of as much as 34%, leading to criticism from industry bodies and state media.
BYD, one of the country’s leading EV makers, has launched a new price war by slashing prices across its lineup.
The move has sent shockwaves through China’s auto sector, with stocks of rival automakers plunging in response.
According to Bloomberg, BYD reduced the price of its popular Seagull hatchback to just 55,800 yuan ($7,780), down 20%. This car had already made headlines globally for its affordability, with a sub-$10,000 price tag.
Another significant discount was applied to the Seal dual-motor hybrid sedan. Its price was slashed by 34%, dropping 53,000 yuan to a new starting price of 102,800 yuan.
Over the past few years, manufacturers have repeatedly lowered prices to outperform their competitors. These tactics have helped bring EV prices down dramatically, making electric mobility accessible to more people.
Ah the free market. Can’t have that here in the USA…100% tariffs.
Looks like even with that 100% tariff some Chinese EVs could be sold here.