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BYD has called for a massive wipeout of competition in China’s car market, demanding that nearly 100 manufacturers be removed from the field after Beijing officially banned discount tactics that fueled the industry’s price wars. Stella Li, executive vice-president of BYD, said the current number of carmakers was unsustainable and that the country’s market was too overcrowded. “Even 20 OEMs is too much,” she said during an interview with the Financial Times at the Munich Motor Show, stressing that price-based competition can no longer be the basis for survival. The Chinese government is targeting what it calls “neijuan”, translated as involution, which refers to extreme internal competition that ends up being self-defeating. Officials say discounting in the car industry is one of the reasons for the country’s worsening deflation, and the administration under President Xi Jinping is cracking down hard. Until now, China has had more than 130 manufacturers competing for slices of the world’s largest market for electric vehicles and plug-in hybrids. But that free-for-all is coming to an end. BYD predicts collapse as competition tightens Li warned that “some of the original equipment makers will be pushed out,” now that they can no longer rely on discounts to attract buyers. The ban hits at a time when EV prices in China have already fallen sharply, and smaller firms are being squeezed on all sides. BYD’s rivals, including Xpeng, also expect the total number of players to crash over the next few years. Xpeng has said the global car industry could shrink to just 10 companies by the end of the decade. Data from AlixPartners shows that of the 129 brands selling EVs and hybrids in China last year, only 15 are expected to stay financially afloat by 2030. BYD believes that with price wars out of the way,…

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Filed under: News - @ September 9, 2025 4:43 pm