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Business Insider
10-07-2025
- Automotive
- Business Insider
Tesla's rivals in China are launching a wave of new Model Y killers to take on the best-selling SUV
China may not care about Elon Musk's politics, but that doesn't mean things are going well for Tesla there. Despite Tesla's sales in China rising in June amid upbeat sales of the refreshed version of its Model Y SUV, the electric vehicle giant is stuttering in its second-largest market. Tesla sold 129,000 vehicles in China during the second quarter of 2025, according to data from the China Passenger Car Association, down nearly 12% from the same period last year. Sales of the Model Y, Tesla's most popular car and China's best-selling SUV, have been flat since 2022 — and it's now set to face a new wave of competition. Last month, smartphone giant-turned EV maker Xiaomi launched its YU7 electric SUV, which amassed more than 240,000 preorders in 24 hours, while EV startup Xpeng debuted the G7, its Model Y rival, a week later to strong early demand. Both cars are priced below the Model Y, and are set to be joined by Nio's L90, another electric SUV that will go on sale later this month. Lei Xing, an independent analyst covering the Chinese auto industry, told Business Insider that Tesla has weathered attempts to dethrone the Model Y before. But, he added, Elon Musk's automaker has never faced a challenge quite like the YU7, which has taken China by storm. "I think it's the Model Y killer. There's been a lot of rivals that have come before it, and the Model Y has been very resilient, but the YU7 seems to be the one that can overtake it," he said. Xiaomi's EV revolution Xiaomi scored a massive hit with its first EV, the SU7, selling more than 200,000 since it launched in March 2024. The company faced a crisis earlier this year when an SU7 was involved in a fatal highway crash, but the sedan has continued to sell well. Lei Xing said that Xiaomi's cars had proved extremely popular with women and young people. In comments posted on social media last week, Xiaomi CEO Lei Jun said that the average age of YU7 preorder holders was 33, and around 30% came from women. Lei Xing added that the company had successfully tapped into a massive, tech-obsessed consumer base of "fanatics" that already own multiple Xiaomi products. He said one of the earliest SU7 buyers in Shanghai told him he owned around 300,000 yuan ($41,000) of Xiaomi products in his home in addition to the company's first EV. "Xiaomi over the last 15 years has expanded their product lineup to all sorts of devices. They've built this home-car-human connection. And now that last missing piece is the car," said Lei Xing. Snow Bull Capital CEO Taylor Ogan, whose Shenzhen-based firm invests in the EV and battery industry, told BI that Xiaomi's tech ecosystem had handed the company a major advantage in China's ultra-competitive market. "My home has over 15 Xiaomi devices, my TV is Xiaomi, my bed is a Xiaomi. This is very common in China — once you're in the ecosystem, it's really hard to get out of," Ogan said. Losing ground on tech Lei Xing said that while Tesla was still the "benchmark" for many Chinese automakers in terms of tech, the US firm was now behind on some key features, such as advanced driver assistance systems. Musk has previously said that Tesla's attempts to launch its Full Self-Driving system have been hampered by Chinese rules around data sharing. The company launched a limited version of FSD in China earlier this year, but it charges Tesla owners around $8,000 to access it, unlike many of its rivals, who have begun offering similar systems for free. "On ADAS, because of some of the regulatory restrictions, Tesla is behind in China," said Lei Xing. "These features are becoming commoditized. The BYD Seagull offers highway ADAS as standard. Customers have come to expect these kinds of things," he added. Ogan said that Tesla still has a good reputation in China, but the company's ageing product lineup and tech have left it vulnerable. "Tech-wise, there are probably 10 companies that have better tech. Xiaomi definitely has better tech than Tesla. It has better motor tech, it has better infotainment, and it actually makes a lot of its own tech," Ogan said, who is an investor in Chinese auto giant BYD. "Tesla is just refreshing the bumpers and their headlights and adding an LED strip in the car. That might work enough in Western markets, but it's not enough in today's market here," he added. Ogan said that Tesla's previous tactic of lowering prices to fend off competition would likely be less effective now that many of its rivals offer cheaper models, and said that some Tesla showrooms had turned to new tactics to boost sales. "The one that's nearest to me, almost every night they're hiring street performers to perform outside of their showroom to try to drive traffic," he said. 'They're nowhere to be seen' One thing that might help Tesla fend off the threat of the YU7 in the short term is the painfully long delivery times for Xiaomi's new EV. The company's website is advertising delivery times of up to 60 weeks for the YU7. Lei Xing said some customers unhappy about the prospect of waiting over a year for the high-tech SUV might instead turn to the Model Y. Xiaomi CEO Jun himself backed that idea, telling his social media followers they should consider buying rival models like Xpeng's G7 and the Model Y if they're in a "hurry." In the long run, however, that is unlikely to solve Tesla's main problem in China: a lack of new products. "They haven't launched a new product in years," Tu Le, the managing director at Sino Auto Insights, told BI. "The reality is that Tesla doesn't face an Elon personality challenge in China like it does in the rest of the world. It is a lack of competitive products in the Chinese market that is causing Tesla problems," he added.
Qatar Tribune
05-07-2025
- Automotive
- Qatar Tribune
China to curb EV price wars as oversupply sparks industry alarm
Agencies The Chinese government is signalling enough is enough when it comes to the fierce competition in the country's electric car market. China's industrial policy has engineered a remarkable transformation to electric vehicles in what is the world's largest auto market. In so doing, it has spawned far more makers than can possibly survive. Now, long-simmering concerns about oversupply and debilitating price wars are coming to the fore, even as the headline sales numbers soar to new heights. Market-leader BYD announced this week that its sales grew 31% in the first six months of the year to 2.1 million cars. Nearly half of those were pure electric vehicles and the rest were plug-in hybrids, it said in a Hong Kong Stock Exchange filing. The company phased out internal combustion engine cars in 2022. BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairperson of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory. 'When volumes get bigger, it's just much harder to manage and you become the bullseye,' said Lei Xing, an independent analyst who follows the industry. The government is trying to rein in what is called 'involution' – a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere. BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData. With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD's overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the U.S. and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair latest bout of handwringing started when BYD cut the price of more than 20 models on May same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the 'healthy development' of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover.
CTV News
04-07-2025
- Automotive
- CTV News
China shows signs of tackling the price wars that are taking a toll on its EV industry
A man dressed as the character from "Black Myth: Wukong" promotes a special edition Han L model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan, File) BEIJING — The Chinese government is signalling enough is enough when it comes to the fierce competition in the country's electric car market. China's industrial policy has engineered a remarkable transformation to electric vehicles in what is the world's largest auto market. In so doing, it has spawned far more makers than can possibly survive. Now, long-simmering concerns about oversupply and debilitating price wars are coming to the fore, even as the headline sales numbers soar to new heights. Market-leader BYD announced this week that its sales grew 31% in the first six months of the year to 2.1 million cars. Nearly half of those were pure electric vehicles and the rest were plug-in hybrids, it said in a Hong Kong Stock Exchange filing. The company phased out internal combustion engine cars in 2022. BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairman of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory. 'When volumes get bigger, it's just much harder to manage and you become the bullseye,' said Lei Xing, an independent analyst who follows the industry. The government is trying to rein in what is called 'involution' — a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere. BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData. With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD's overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the U.S. and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair advantage. Market leader BYD comes under attack The latest bout of handwringing started when BYD cut the price of more than 20 models on May 23. The same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the 'healthy development' of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover. 'The Evergrande in the automobile industry already exists, but it is just yet to explode,' he said in a video message posted on social media. Two days later, a BYD executive rejected any comparison to Evergrande and posted data-filled charts to buttress his case. 'To be honest, I am confused and angry and it's ridiculous!' Li Yunfei, BYD's general manager of brand and public relations, wrote on social media. 'All these come from the shocking remarks made by Chairman Wei of Great Wall Motors.' Next, the government and an industry association weighed in. The China Association of Automobile Manufacturers called for fair competition and healthy development of the industry, noting that major price cuts by one automaker had triggered a new price war panic. On the same day, the Ministry of Industry and Information Technology vowed to tackle involution-style competition in the auto industry, saying that recent disorderly price wars posed a treat to the healthy and sustainable development of the sector. 'That price cut might have been the final straw that irked both competitors and regulators for the ruthlessness that BYD continues to show,' Lei said. A promise to pay suppliers within 60 days signals possible shift The following month, 17 automakers including BYD made a pledge: They would pay their suppliers within 60 days. One way China's automakers have been surviving the bruising price wars is by delaying the payments for months. The agreement, if adhered to, would reduce financial pressure on suppliers and could rein in some of the fierce competition. 'The introduction of the 60-day payment pledge is the call of the government to oppose involution-style competition,' said Cui Dongshu, the secretary-general of the China Passenger Car Association. It also reduces the risk of an Evergrande-like scenario. Many automakers had stretched out payments by paying suppliers with short-term debt — promises to repay them in a certain period of time — instead of cash. Real estate developers used the same system. It worked until it didn't. When Evergrande defaulted on its debts, suppliers were left holding worthless promises to pay. 'This practice is seen as a potential cause of a larger crisis, similar to what happened with Evergrande,' Grandhi said. The vows to speed up payments and the government calls to rein in the price wars, along with a rollback of some financing offers, point to an effort to reverse downward price expectations, said Jing Yang, a director at Fitch Ratings who focuses on the auto industry. 'We may watch how effectively these measures are in reversing the price trend and how would that affect EV demand in the coming quarters,' she said. ___ Ken Moritsugu, The Associated Press Associated Press researcher Yu Bing in Beijing contributed to this report.
Time of India
04-07-2025
- Automotive
- Time of India
China shows signs of tackling price wars taking toll on its EV industry
The Chinese government is signalling enough is enough when it comes to the fierce competition in the country's electric car market. China's industrial policy has engineered a remarkable transformation to electric vehicles in what is the world's largest auto market. In so doing, it has spawned far more makers than can possibly survive. Now, long-simmering concerns about oversupply and debilitating price wars are coming to the fore, even as the headline sales numbers soar to new heights. Market-leader BYD announced this week that its sales grew 31% in the first six months of the year to 2.1 million cars. Nearly half of those were pure electric vehicles and the rest were plug-in hybrids, it said in a Hong Kong Stock Exchange filing. The company phased out internal combustion engine cars in 2022. BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairman of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory. "When volumes get bigger, it's just much harder to manage and you become the bullseye," said Lei Xing, an independent analyst who follows the industry. The government is trying to rein in what is called "involution" - a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere. BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData. With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD's overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the US and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair advantage. Market leader BYD comes under attack The latest bout of handwringing started when BYD cut the price of more than 20 models on May 23. The same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the "healthy development" of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover. "The Evergrande in the automobile industry already exists, but it is just yet to explode," he said in a video message posted on social media. Two days later, a BYD executive rejected any comparison to Evergrande and posted data-filled charts to buttress his case. "To be honest, I am confused and angry and it's ridiculous!" Li Yunfei, BYD's general manager of brand and public relations, wrote on social media. "All these come from the shocking remarks made by Chairman Wei of Great Wall Motors." Next, the government and an industry association weighed in. The China Association of Automobile Manufacturers called for fair competition and healthy development of the industry, noting that major price cuts by one automaker had triggered a new price war panic. On the same day, the Ministry of Industry and Information Technology vowed to tackle involution-style competition in the auto industry, saying that recent disorderly price wars posed a treat to the healthy and sustainable development of the sector. "That price cut might have been the final straw that irked both competitors and regulators for the ruthlessness that BYD continues to show," Lei said. A promise to pay suppliers within 60 days signals possible shift The following month, 17 automakers including BYD made a pledge: They would pay their suppliers within 60 days. One way China's automakers have been surviving the bruising price wars is by delaying the payments for months. The agreement, if adhered to, would reduce financial pressure on suppliers and could rein in some of the fierce competition. "The introduction of the 60-day payment pledge is the call of the government to oppose involution-style competition," said Cui Dongshu, the secretary-general of the China Passenger Car Association. It also reduces the risk of an Evergrande-like scenario. Many automakers had stretched out payments by paying suppliers with short-term debt - promises to repay them in a certain period of time - instead of cash. Real estate developers used the same system. It worked until it didn't. When Evergrande defaulted on its debts, suppliers were left holding worthless promises to pay. "This practice is seen as a potential cause of a larger crisis, similar to what happened with Evergrande," Grandhi said. The vows to speed up payments and the government calls to rein in the price wars, along with a rollback of some financing offers, point to an effort to reverse downward price expectations, said Jing Yang, a director at Fitch Ratings who focuses on the auto industry. "We may watch how effectively these measures are in reversing the price trend and how would that affect EV demand in the coming quarters," she said.
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Business Standard
04-07-2025
- Automotive
- Business Standard
China shows signs of tackling price wars taking toll on its EV industry
China's industrial policy has engineered a remarkable transformation to electric vehicles in what is the world's largest auto market AP Beijing The Chinese government is signalling enough is enough when it comes to the fierce competition in the country's electric car market. China's industrial policy has engineered a remarkable transformation to electric vehicles in what is the world's largest auto market. In so doing, it has spawned far more makers than can possibly survive. Now, long-simmering concerns about oversupply and debilitating price wars are coming to the fore, even as the headline sales numbers soar to new heights. Market-leader BYD announced this week that its sales grew 31 per cent in the first six months of the year to 2.1 million cars. Nearly half of those were pure electric vehicles and the rest were plug-in hybrids, it said in a Hong Kong Stock Exchange filing. The company phased out internal combustion engine cars in 2022. BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairman of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory. When volumes get bigger, it's just much harder to manage and you become the bullseye, said Lei Xing, an independent analyst who follows the industry. The government is trying to rein in what is called involution a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere. BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData. With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD's overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the US and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair advantage. Market leader BYD comes under attack The latest bout of handwringing started when BYD cut the price of more than 20 models on May 23. The same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the "healthy development of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover. "The Evergrande in the automobile industry already exists, but it is just yet to explode, he said in a video message posted on social media. Two days later, a BYD executive rejected any comparison to Evergrande and posted data-filled charts to buttress his case. To be honest, I am confused and angry and it's ridiculous! Li Yunfei, BYD's general manager of brand and public relations, wrote on social media. All these come from the shocking remarks made by Chairman Wei of Great Wall Motors. Next, the government and an industry association weighed in. The China Association of Automobile Manufacturers called for fair competition and healthy development of the industry, noting that major price cuts by one automaker had triggered a new price war panic. On the same day, the Ministry of Industry and Information Technology vowed to tackle involution-style competition in the auto industry, saying that recent disorderly price wars posed a treat to the healthy and sustainable development of the sector. That price cut might have been the final straw that irked both competitors and regulators for the ruthlessness that BYD continues to show, Lei said. A promise to pay suppliers within 60 days signals possible shift The following month, 17 automakers including BYD made a pledge: They would pay their suppliers within 60 days. One way China's automakers have been surviving the bruising price wars is by delaying the payments for months. The agreement, if adhered to, would reduce financial pressure on suppliers and could rein in some of the fierce competition. The introduction of the 60-day payment pledge is the call of the government to oppose involution-style competition," said Cui Dongshu, the secretary-general of the China Passenger Car Association. It also reduces the risk of an Evergrande-like scenario. Many automakers had stretched out payments by paying suppliers with short-term debt promises to repay them in a certain period of time instead of cash. Real estate developers used the same system. It worked until it didn't. When Evergrande defaulted on its debts, suppliers were left holding worthless promises to pay. This practice is seen as a potential cause of a larger crisis, similar to what happened with Evergrande, Grandhi said. The vows to speed up payments and the government calls to rein in the price wars, along with a rollback of some financing offers, point to an effort to reverse downward price expectations, said Jing Yang, a director at Fitch Ratings who focuses on the auto industry. We may watch how effectively these measures are in reversing the price trend and how would that affect EV demand in the coming quarters, she said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
