BYD Sparks Price War in China’s EV Market with Massive Discounts

BYD (BYDDY) (HK:1211), a Chinese electric vehicle (EV) maker, has cut prices on 22 models by as much as 35%, renewing competition in the EV market. The move comes as EV sales growth slows, forcing automakers to adjust pricing strategies to attract buyers.

The deep discounts offered by BYD raised fears of a renewed price war in the competitive Chinese EV market among investors.

BYD stock price fell over 8% in the Hong Kong market, dragging down other Chinese EV players. Li Auto (LI) (HK:2015), Great Wall Motor (HK:2333), and Geely Automobile (HK:0175) declined by over 5%.

Why Is BYD Cutting Prices?

Even though BYD’s EV sales hit new highs in April 2025, when it outsold Tesla (TSLA) in Europe for the first time, growth is slowing down.

Thus, BYD is likely slashing prices to boost sales as EV demand slows and competition heats up in China’s auto market. Also, economic uncertainty has made buyers hesitant, leading to higher inventory at dealerships.

BYD is cutting prices until the end of June. The Seagull hatchback is now 20% cheaper, and the Seal hybrid sedan has dropped 34% in price. These cuts are expected to trigger a price war, with other automakers likely to follow suit.

Top Analyst Raises Price Target on BYD Stock

Recently, UBS analyst Paul Gong raised his price target for BYD from HK$450 to HK$540, citing stronger overseas sales visibility. The Top analyst noted that a survey showed growing acceptance of BYD in Europe, and that Tesla’s weaker brand image could help BYD gain market share.

With higher export contributions boosting margins, Gong raised his 2025 to 2027 EPS estimates by 6-10%, reflecting a more optimistic outlook on BYD’s global expansion.

Is BYD Stock a Good Buy?

Turning to Wall Street, BYD stock has a Strong Buy consensus rating based on 12 Buys assigned in the last three months. At HK$528.26, the average BYD stock price target implies a 24.24% upside potential.

See more BYD analyst ratings