Leaked BYD Email Threatens EV Price War Escalation
Chinese electric vehicle manufacturer BYD is intensifying its role as a dominant force in the global automotive industry. A leaked internal email suggests the company plans to deepen its price war in China, a move aimed at consolidating its leadership in the world’s largest EV market while aggressively targeting international growth.
According to reports, a BYD email leaked on the Chinese social media platform Weibo yesterday called for a 10% price reduction from one of its unnamed suppliers beginning in January. This bold request is widely seen as part of BYD’s larger strategy to cut costs and further reduce vehicle prices in an already hyper-competitive market.
Li Yunfei, BYD’s PR and branding director, responded to the reports via Weibo, explaining, “Annual bargaining with suppliers is a common practice in the automotive industry. We put forward price reduction targets to suppliers. They’re not mandatory requirements. We can negotiate.”
The leaked communication is significant because it underscores BYD’s role as a price disruptor in the EV industry. Over the past two years, BYD has slashed prices on its best-selling models, forcing smaller automakers to the brink of collapse while spurring consolidation within the Chinese market.
BYD’s pricing strategy has reshaped the competitive landscape in China. Smaller EV startups, such as HiPhi and Shanghai-based WM Motor, have filed for bankruptcy, while major international players like Volkswagen and Stellantis have sought alliances with Chinese brands such as Xpeng and Zhejiang Leapmotor to stay competitive.
BYD’s dominance has also put pressure on Tesla, which recently matched BYD’s price cuts on its own vehicles in China. The moves are emblematic of a broader price war that has sent shockwaves through the industry, as automakers scramble to balance profitability with affordability.
Amid this backdrop, BYD has significantly ramped up production to meet soaring demand. In the past three months alone, the company has increased production by nearly 200,000 units and hired an astonishing 200,000 employees.
By the end of 2024, BYD is projected to sell a staggering 4 million vehicles—up from 3.2 million already sold this year. In October, BYD set a record by selling 500,000 units in a single month. This accounts for more than one-third of all EV and plug-in hybrid sales in China in 2024, cementing its position as the country’s best-selling car brand.
BYD’s growth is not just measured in sales volume—it is reflected in its financials. The automaker reported a net profit of 11.6 billion yuan ($1.63 billion) for the third quarter of 2024, a 24% increase from the previous year. Its quarterly revenue of $28.24 billion even outpaced Tesla’s $25.2 billion for the first time, signaling its rise as a global powerhouse.
While over 90% of BYD’s vehicles are still sold domestically, the company is making strides in international markets. BYD aims to double its exports this year to 450,000 vehicles, focusing on Europe and emerging markets.
However, BYD faces significant challenges abroad, including higher tariffs and political hurdles. In Europe, for example, the European Commission has launched investigations into whether Chinese EV makers are benefiting from unfair government subsidies. Such scrutiny could lead to increased tariffs, potentially impacting BYD’s plans to gain a foothold in the region.
Information for this story was found via Electrek and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
