Tensions between two of China’s leading automakers have boiled over, with BYD pushing back against remarks from Great Wall Motor’s chairman, who warned that China’s auto industry is entering an “unhealthy” phase due to a deepening price war.
Shares of major Chinese automakers, including BYD, Nio, and XPeng, fell this week following comments by Great Wall Motor Chairman Wei Jianjun. Wei raised alarms over the industry’s deteriorating profitability, likening the situation to the collapse of Evergrande, the heavily indebted property developer that was liquidated last year. He did not name specific companies in his warning.
BYD's head of branding and public relations, Li Yunfei, publicly dismissed Wei’s remarks as alarmist. In a post on Weibo, Li stated there was no crisis comparable to Evergrande’s among China’s leading automakers and expressed confusion over online speculation that Wei’s comments were aimed at BYD.
Li defended BYD’s financial position, noting the company’s 70% debt-to-asset ratio and more than 580 billion yuan in debt. He argued that such figures were normal for a fast-growing company and drew comparisons with international giants like Ford, Boeing, and Toyota—without mentioning specific competitors in China.
He also warned that BYD would pursue legal action against individuals spreading misinformation online and claimed to have submitted evidence to Chinese authorities.
Great Wall Motor has yet to respond to requests for comment.
Despite growing concerns, China’s auto price war shows little sign of easing. This week, multiple automakers followed BYD’s lead by introducing new discounts and promotions in an effort to maintain sales momentum.
Wei’s views have found some support within the industry. Changan Chairman Zhu Huarong echoed the sentiment during a shareholder meeting on Tuesday, stating that Wei’s comments served as a cautionary message about growing risks in the market, according to local media.
The rivalry between BYD and Great Wall is not new. In 2023, Great Wall Motor reported BYD to Chinese regulators, alleging its top-selling hybrid vehicles failed to meet emissions standards. BYD later called for the domestic auto industry to unite and “demolish the old legends” of the global car market—remarks that drew a pointed response from Great Wall.
