BYD – Maintains management regardless of intensifying competitors

BYD triggers a second wave of worth cuts to defend market share

In Could 2025, BYD launched a contemporary spherical of worth reductions throughout greater than a dozen electrical car (EV) fashions, with reductions reaching as much as 34%.  Its most reasonably priced EV now retails at RMB 55,800 (~S$10,400).  This aggressive pricing technique has ignited a broader worth conflict, with rivals similar to Geely and Leapmotor additionally reducing costs, intensifying competitors throughout China’s EV market. Supply: Finance China.com

Razor-thin margins increase considerations over sector sustainability

The widespread worth cuts are pressuring already skinny revenue margins throughout the auto trade.  In response to China’s Nationwide Bureau of Statistics, internet margins fell to three.9% in 1Q2025, down from 4.3% in 2024.  Traders are more and more fearful that extended pricing strain might push weaker automakers into monetary misery, drawing parallels with previous challenges confronted by China’s property sector. Supply: Reuters

Structural points persist:

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