Massive “liquidation operation” at byd: the price of cars collapses, but not without consequences

The sky darkens above Shenzhen, but the long-range radars of Byd remain locked over the future. The Chinese leader in electric vehicles saw its value melted by more than 12 % in two days on the Hong Kong Stock Exchange, a consequence of a particularly aggressive pricing strategy. Objective displayed: relaunch demand in China, faced with an economic slowdown and increasingly ferocious internal competition.

Byd relaunches the price war in China, the scholarship is alarmed

Monday, May 26, the BYD action dropped by 8.6 %, followed by a new decline of 4 % Tuesday morning. The cause? A salvo of price discounts reaching up to 34 %, especially on the Seal 07 DM-I (with a drop of 53,000 yuan, or almost € 6,500). In all, 22 models of its Ocean and Dynasty ranges are concerned, until June 30, 2025.

This commercial offensive is partly explained by the accumulation of a stock estimated at 150,000 vehicles – the equivalent of 2 weeks of sales. But it also reflects an increasing feverishness in the face of a local market under tension: weakening growth, a hidden trade war with Washington and economic uncertainty weighs the perspectives.

This strategy has led to a domino effect. Other Chinese giants such as Geely, Great Wall Motor or Xpeng have seen their actions unscrew between 4 and 9 %, anticipating a deflationary spiral throughout the sector.

Europe, byd’s salvation board facing Tesla

And yet, not all indicators are red. In April 2025, Byd has crossed a symbolic CAP: 7,231 registrations of electric cars in Europeagainst 7,165 for Tesla. A historic first, made possible by a leap of 169 % of sales on the old continent. Added to this is an increasing distrust of Elon Musk’s brand, weakened by its dividing political outings.

In parallel, BYD records solid commercial results: nearly a million vehicles sold in the first quarter, CAP on 5.5 million by the end of 2025. The group has 1.11 billion euros in net profits, three times more than Tesla over the same period, and a gross margin of 20 % (against 16 % for its American rival).

Technological innovation and vertical integration

On the technology side, Byd has nothing to envy Tesla. The manufacturer massively deploys its Advanced God’s Eye driving aid system, now installed as standard on several models in France, of which Dolphin Surf (ex-Seagull)marketed at € 19,990 including tax. This system integrates semi-autonomous conduct, emergency braking and helping track.

The company is also based on Chinese AI Deepseek And its R1 model to compete with the Full Self-Driving of Tesla, at a much more contained cost. Above all, Byd is also the world’s n ° 2 battery behind Catlwhich allows him a total control of the production chain and substantial economies of scale.

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