Asger Risom
The electric vehicle race in China has taken a bitter turn, with major players accusing market leader BYD of bending the rules on hybrid emissions while inflaming a destructive price war.
What began as fierce competition in China’s electric vehicle (EV) market has erupted into an all-out dispute between some of its biggest automakers.
Geely and Great Wall Motor are both now publicly accusing BYD—China’s largest EV manufacturer—of deploying questionable tactics in both emissions compliance and pricing strategy.
Emissions at the Heart of the Storm
The accusations center around BYD’s popular plug-in hybrid models, the Qin Plus and Song Plus. Great Wall first filed a formal complaint in 2023, claiming the vehicles used unpressurized fuel tanks that may have allowed excessive fuel evaporation, thus breaching China’s emissions standards.
As reported by elEconomista, BYD denies any wrongdoing, arguing the components were legal at the time and were phased out after customer concerns. Still, the matter remains under regulatory review, and tensions are growing.
Last weekend, Geely’s vice president Victor Yang publicly supported Great Wall’s claims during an auto industry forum in Chongqing, stating, “Wei Jianjun [Great Wall’s chairman] is the whistleblower of our industry.”
An Escalating Price War
Parallel to the emissions controversy is an aggressive price war spearheaded by BYD. The company’s decision to price its cheapest model at just 55,800 yuan (roughly $7,770) has sent shockwaves through the sector.
Rivals are under pressure, profit margins are shrinking, and investor confidence is wobbling.
The backlash is spreading beyond boardrooms. China’s state-backed media and industry groups are now voicing concern.
The People’s Daily, a Communist Party mouthpiece, called the price slashing a “race to the bottom” that threatens the entire supply chain and risks worker livelihoods.
A government-linked industry association echoed the call for moderation, warning automakers not to sell vehicles below production cost.
Industry Faces a Critical Juncture
For BYD, the dual allegations of environmental non-compliance and unsustainable pricing could dent its reputation at home and abroad.
For the broader Chinese EV sector, the infighting may signal deeper structural risks in a market that’s rapidly expanding—but under increasing strain.
As of now, neither Great Wall nor China’s Ministry of Industry has commented further. Meanwhile, BYD maintains that its actions fall within the rules and that it continues to lead in both technology and affordability.
Whether that leadership can hold under the weight of legal, industrial, and political scrutiny remains to be seen.