BYD's stock price continues to decline amid concerns over sales due to significant price cuts.
Tuesday, BYD Company Limited's stock price continued to fall on the Hong Kong Stock Exchange, bringing its cumulative decline over two days to more than 10%. This followed the company's announcement last week of a wide range of price reductions, which raised investor concerns about the possible escalation of intense price wars in China's electric vehicle market.
In early trading Tuesday, BYD's stock fell by 4% at one point, continuing to be under pressure after an 8.6% drop on Monday. The selling pressure began after BYD announced maximum price cuts of up to 34% for 22 pure electric and plug-in hybrid models in the Chinese market, with the discounts set to last until the end of June.
Analysts from Morgan Stanley pointed out that the price competition triggered by BYD may continue, with its impact possibly spreading to the second half of this year. Bloomberg analysts noted that BYD's significant price cuts on 22 electric vehicles highlighted its focus on sales volume in 2025, which would force competitors to offer greater discounts or make concessions in terms of sales and market share. The average discount rate for Chinese automobiles has reached 15%-16% this year, despite subsidies driving industry growth; however, the discount rate may increase further in the second half of the year.
Original Source: https://www.toutiao.com/article/1833285500897546/
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