Electric Vehicle Price Wars in China, Regulators Warn BYD, Others to Keep Prices Above Costs
Officials told EV makers to “self-regulate,” and that they need to address the following issues:
Selling cars below costs or making unreasonable prices cuts
Stop the practice of “zero-mileage” cars - registering cars to the manufacturer or dealer, but not a private owner so they appear as sales - the auto industry version of channel stuffing
Address supply chain financing excesses - where OEM manufacturers are using suppliers as quasi-debt issuers. In the case of BYD, their supply chain debt was 10 times higher than their net debt disclosed in financial statements in 2024
