- English
Shares of Chinese electric vehicle giant BYD fell as much as 8.25%, marking a steep correction from last week’s record high after the company announced massive price cuts for several models
BYD said on Chinese platform Weibo that it would reduce prices for 22 electric and plug-in hybrid models by the end of June.
Among them, for the Seagull model, an urban hatchback, the price was reduced by 20% to 55,800 yuan (about $7,780); for the Seal sedan with two hybrid engines, the price was reduced by 34% to 102,800 yuan.
These discounts come in the context of previous adjustments made by BYD, including the Han and Tang models, launched this year with prices up to 14.3% lower than previous versions.
According to Citi analysts, the discounts led to a 30% to 40% increase in traffic in BYD showrooms on the weekend of May 24–25, compared to the previous one. The fall in BYD shares dragged down other Chinese car companies, as investors became more cautious in the face of increasingly tough competition and the risk of a price war: Geely Automobile shares fell 7.29%, Great Wall Motor fell 2.94%, Li Auto fell 4.93% and Xpeng fell 4.19%.
