Chinese EV Stocks Tumble as BYD Slashes Prices by Up To 34%

Shares of Chinese electric vehicle (EV) makers fell sharply after BYD—the country’s top-selling car brand—announced sweeping price cuts of up to 34% across 22 electric and plug-in hybrid models, Bloomberg’s Danny Lee reported.

The price cuts, effective through June, aim to reignite flagging consumer demand as EV sales growth slows. I Photo: BYD Facebook

BYD shares sank as much as 8.3% in Hong Kong trading, dragging down peers Li Auto, Great Wall Motor, and Geely, each of which fell over 5%, amid mounting concerns about a deepening price war.

The price cuts, effective through June, aim to reignite flagging consumer demand as EV sales growth slows and China's broader economic malaise continues to weigh on spending.

Despite reaching record annual sales, China's EV sector faces ballooning inventories, with dealership stock levels rising to 3.5 million cars—or 57 days of inventory—as of April, the highest since December 2023.

Among BYD’s most aggressive moves: the Seagull hatchback, already known for its sub-$10,000 global appeal, now starts at just 55,800 yuan ($7,780), a 20% discount. The dual-motor Seal hybrid sedan saw the steepest cut at 34%, or 53,000 yuan, dropping its price to 102,800-yuan, Bloomberg’s Charlotte Yang also reported.