Fierce Price Slashing, Public Rivalries, and Industry Chaos: Inside 2025’s Explosive Chongqing EV Showdown
BYD, Geely, and Great Wall Motor clash at China’s biggest auto forum, exposing deep industry rifts as a crippling EV price war rages in 2025.
| Q1 2025 Profit Margins: | Plunged to 3.9% from 8.99% in 2014 |
| Models Discounted May 2025: | Over 100 from top brands |
| EV Market Penetration: | Now exceeds 40% in China |
| Tesla Q1 2025 Europe Sales: | Dropped 36% YoY |
Tensions reached fever pitch at the 2025 China Chongqing Auto Forum as top leaders from BYD, Geely, and Great Wall Motor (GWM) traded barbs over the industry’s merciless price war. Gone are the days of united PR front lines—now, the gloves are off as China’s EV giants accuse each other of dirty tricks, misleading the public, and fighting for survival in a shrinking profit pool.
Li Yunfei, BYD’s General Manager of Branding and Public Relations, threw the first punch, calling out unnamed rivals for orchestrating smear campaigns and manipulating buyer opinion. His public condemnation marked a dramatic shift from BYD’s previous unity-themed messaging. Geely’s Victor Young hit back, dismissing BYD’s moral high ground and pushing for regulatory scrutiny over emotional appeals, especially after a fuel tank design spat drew industry-wide attention.
The argument didn’t end with BYD and Geely. Great Wall Motor’s chief recently described the sector’s atmosphere as a “ticking time bomb.” Meanwhile, Huawei’s consumer business head lambasted one-hit wonders, prompting Xiaomi’s CEO to snap back online. High emotion and factional infighting are now out in the open, threatening to fracture the world’s largest auto market.
Q: Why Are China’s EV Giants Fighting?
The short answer: survival. Plummeting profit margins, relentless price undercutting, and swelling inventories have ignited an all-out price war—over 60 models were discounted in just the first four months of 2025. Top executives now admit the current profit crisis could force weaker automakers out, intensifying risks for everyone left in the game.
Q: How Bad Is the EV Price War Impacting Companies?
According to the China Association of Automobile Manufacturers, Q1 2025 saw industry-wide profit margins dive to a mere 3.9%, compared to a healthy 8.99% a decade ago. In May, over 100 EV models from leading brands faced deep price cuts, while market leaders like Tesla suffered a 36% plunge in European sales. This is no mere blip—selling more cars no longer guarantees more profit.
How Are Regulators Responding?
With public mudslinging on the rise, regulatory bodies are stepping in. CAAM recently denounced predatory sales tactics and unsustainable, below-cost pricing. The China Automobile Dealers Chamber of Commerce followed suit, warning against pressuring local dealers with unrealistic sales targets. Their intervention signals a shift from moral pleas to strict legal enforcement. Investors and industry insiders are watching closely as the rules of China’s EV game are rapidly rewritten.
How Should Automakers Navigate the Storm?
Some, like Chery and Changan, advocate for a “principled competition” approach—focusing on core technological capabilities instead of mudslinging. Others, like Seres, warn the climate is unsustainable for innovation and future investment. As EV penetration surges past 40%, scale-driven growth is running into hard physical and financial limits.
What’s Next for the Global EV Market?
The turbulence in China’s EV sector is already sending shockwaves worldwide. Tesla’s steep sales drop in Europe underlines a global reset in expectations. As Chinese brands battle with slashed prices, thinned margins, and regulatory crackdowns, only the most agile and innovative are likely to survive the carnage—and maybe even set the pace for the next era of electric mobility.
For the latest on global auto trends, check out news from Tesla, Xiaomi, and Huawei.
How to Keep Ahead: Survival Checklist for the EV Era
- Stay Updated: Subscribe for weekly EV industry email briefings.
- Watch Regulatory Changes: Monitor statements from CAAM and dealer associations.
- Track Industry Leaders: Follow BYD, Geely, and GWM announcements for strategic shifts.
- Compare Global Trends: Analyze EV sales data across China, Europe, and the US.
- Focus on Innovation: Invest in autonomous tech, battery advances, and core capabilities.
The battle for EV dominance in China isn’t just news—it’s a blueprint for the future of global auto. Don’t miss what happens next.
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