By Admin 
China auto market: The condition of China’s auto sector has been defeated, since China’s largest electric vehicle company BYD decided to drastically cut the price. The company has cut the prices of its 22 models by 34 percent. It also includes electric car seagel, which is now priced at $ 7,700. This promotion of the company is going to run till June, but this marketing campaign has become a challenge for other companies as now other auto companies may also have to resort to discounts to move forward in this race, which can cause a huge decline in the auto sector.
Company focus on volume not margin
On Monday, BYD shares declined by more than 8 percent. The shares of other EV companies also recorded a decline. Market experts believe that the target of BYD is to sell 5.5 lakh vehicles in 2025, which is 30 percent more than the previous year. American analyst firm Morningstar Vincent Sun says that the company is worried about the volume, not a margin.
Now this price war has gradually spread throughout the sector. Other companies like wet, leapmotor are also reducing the prices of their models. Experts believe that these price war may be for a short time, but over time it can weaken the brand value and be out of the race with weak balance sheet as not every company can suffer losses. Hatong’s Oscar Wang warned that if there was no attempt to control the situation, there is a possibility of heavy losses in the cost in the second half of 2025.
Companies are going into losses
Meanwhile, 9.5 percent of wet auto shares in Hong Kong stock market declined by 3 % and 8.5 percent respectively in shares of Neo and Lipmotor. Many foreign companies are looking for other global markets outside here, given the growing competition and deficit in China.
There is also India in this list, whose auto sector is moving fast. In such a situation, companies are settling their manufacturing base or export base here. At the same time, the situation in China is that some companies are selling cars at a lower price than the cost. There are also many startup companies in China’s growing electric vehicle segment, which will face huge losses due to this price war.
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