Tensions flared on the 2025 China Chongqing Auto Discussion board as senior executives from BYD, Geely, and Nice Wall Motor (GWM) exchanged public criticisms, underscoring the deepening divisions in China’s electrical automobile (EV) trade. The confrontations got here towards a worsening value battle and declining trade revenue margins. BYD’s Basic Supervisor of Branding and Public Relations, Li Yunfei, ignited the weekend’s most talked-about second by condemning particular unnamed rivals for what he described as “soiled methods,” “smear campaigns,” and underhanded techniques aimed toward manipulating public opinion.
This marks a pointy departure from BYD Chairman Wang Chuanfu’s emotional 2023 enchantment for unity with the phrase, “Collectively, we’re China’s auto trade.” Two years later, that unity seems fractured. On the identical discussion board, Geely Holding’s Senior Vice President Victor Younger responded forcefully to Li’s remarks, accusing BYD of hypocrisy and suggesting that BYD’s narrative was an try to mislead. “Isn’t this only a case of the thief crying thief?” Yang retorted that regulatory scrutiny ought to exchange emotional appeals in settling disputes like GWM’s formal criticism over BYD’s gasoline tank design.
The clashes weren’t restricted to BYD and Geely. Weeks earlier, GWM Chairman Wei Jianjun warned of a brewing disaster within the trade, likening it to a ticking time bomb. Huawei’s Yu Chengdong additionally criticised rivals who succeed with a single product, prompting Xiaomi’s Lei Jun to counter on-line: “To slander is to lookup in awe.” These exchanges have crystallised into open factions throughout the trade, with Chery taking a extra average tone. Chery Government Vice President Li Xueyong acknowledged intense competitors however argued that trade challenges might drive long-term well being if carmakers targeted on core capabilities.
Li Yunfei defended BYD’s restraint in not naming rivals straight, citing an inner directive from Wang Chuanfu to not interact in public mudslinging. Nonetheless, he described some trade friends as “silly and malicious” and known as for presidency authorities to step in towards what he described as coordinated misinformation campaigns. Victor Younger dismissed the ethical posturing, warning that phrases like “non-cooperative” and “dangerous actors” are not any substitute for the rule of regulation. A number of trade leaders echoed Younger’s sentiments. GAC Aion’s deputy normal supervisor, Xiao Yong, described Younger as a “spokesperson for the trade.” On the identical time, Seres Chairman Zhang Xinghai warned that the aggressive surroundings had turn out to be unsustainable, with lowered income and funding in innovation. Executives from Changan, and Chery, equally known as for a extra principled method to competitors.
The underlying reason for the stress is the intensifying value battle. In accordance with the China Council for the Promotion of Worldwide Commerce’s Auto Department, greater than 200 fashions noticed value cuts in 2023. Within the first 4 months of 2025 alone, over 60 fashions have adopted go well with. The scenario peaked in Might when over 100 fashions had been discounted throughout prime manufacturers. Revenue margins within the sector have collapsed—dropping to only 3.9% in Q1 2025, in comparison with 8.99% in 2014. The outcome: an more and more poisonous market during which quantity progress masks eroding monetary well being.
On Might 31, the China Affiliation of Vehicle Producers (CAAM) launched an announcement condemning predatory pricing practices, particularly concentrating on gross sales under price to remove competitors. Days later, the China Vehicle Sellers Chamber of Commerce issued a separate warning towards pressuring sellers with unrealistic gross sales targets, calling such techniques unsustainable.
These strikes replicate a broader shift from ethical appeals to regulatory enforcement. Trade observers word that as EV penetration exceeds 40%, the Chinese language auto sector collides with scale-driven progress limits. As soon as shielded by state assist and excessive margins, producers are actually caught between slicing costs to remain aggressive and investing closely in superior tech comparable to autonomous driving and solid-state batteries.
The fallout is seen. Even Tesla, as soon as dominant in Europe, noticed its Q1 2025 gross sales plunge 36% year-on-year to only 53,200 models, with nations like Germany and France experiencing over 60% drops. The value battle has led to a collapse of once-profitable pricing constructions, making a market the place promoting extra not ensures profitability.
Because the EV recreation enters its mid-phase, all gamers are doubling down. The price of staying on the desk rises whereas the room for error shrinks. Whether or not the discussion board’s fiery exchanges mark a turning level—or merely one other skirmish in a protracted battle—stays to be seen. Nonetheless, one factor is evident: the age of unity in China’s auto trade has given solution to a combat for survival.
