BYD Price Cuts Trigger China EV Stock Meltdown—Geely, Nio Also Hit
China's EV stocks nosedive after BYD slashes prices across 20+ models. Geely, Nio, and others feel the shock as a fierce price war heats up.

Shares of leading Chinese automakers took a sharp downturn on Monday after BYD, the country’s top electric vehicle producer, rolled out a sweeping set of incentives and discounts on more than 20 of its models. The move signaled an intensifying price war in the world’s largest auto market and sparked renewed investor anxiety across the sector.
BYD’s Hong Kong-listed shares closed down 8.6%, while Geely Automobile Holdings saw a 9.5% plunge. Other automakers weren’t spared either—Nio Inc. and Zhejiang Leapmotor Technology experienced losses ranging between 3% and 8.5% by market close.
China EV stocks tumble after BYD slashes prices up to 35% pic.twitter.com/s2pxcpa1Jy — Whole Mars Catalog (@WholeMarsBlog) May 26, 2025
The latest wave of discounts includes major price cuts and added features at no extra cost, such as smart assisted driving systems—previously reserved for higher-end vehicles. BYD’s updated pricing brought the entry-level cost of its Seagull hatchback, a battery-only compact car, down to 55,800 yuan (approximately $7,765), further intensifying the battle for market share.
The aggressive pricing strategies come amid growing concerns about the health of the global auto industry. Great Wall Motors’ CEO added to the tension, warning of mounting pressures on the sector due to overcapacity, fierce competition, and economic uncertainty.
Industry analysts say the incentive-driven sales tactics are eroding profit margins and may lead to prolonged volatility in China’s EV market. With automakers racing to attract price-sensitive consumers, investor confidence is wavering—reflected in the steep market losses across the board.
The price war, which began in earnest last year, continues to accelerate as competition stiffens and automakers attempt to defend or grow their market positions in a tightening economy. The latest moves by BYD and Geely could force other players to follow suit, further pressuring the already-strained profitability of the EV sector in China.
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