June 8 – Chinese automakers are engaged in heated discussions about industry standards and competitive practices during the ongoing 2025 China Auto Chongqing Forum, with BYD addressing recent controversies while multiple executives voice concerns about destructive price wars.
BYD Clarifies Fuel Tank Specifications
Li Yunfei, BYD’s General Manager of Brand and Public Relations, publicly addressed two major controversies surrounding the company. Regarding fuel tank specifications, Li stated that China’s plug-in hybrid electric vehicle (PHEV) technology and standards lead the world, confirming that BYD’s use of normal-pressure fuel tanks from 2021-2023 complied with regulations. The company has since transitioned entirely to high-pressure tanks based on customer feedback.
Li also mentioned that another major Zhejiang-based automaker employed similar normal-pressure tank solutions, expressing confidence in their compliance with environmental standards.
BYD Denies Financial Irregularity Allegations
Responding to “China Evergrande of auto industry” comparisons, Li revealed that a Hebei-based competitor had filed malicious reports with financial regulators since late 2023, alleging high debt ratios and accounting fraud. Regulatory investigations cleared BYD of any wrongdoing. While welcoming industry oversight, BYD warned it would pursue legal action against defamatory practices.
Industry Leaders Condemn Destructive Competition
The forum became a platform for automakers to address the industry’s intensifying price wars. Yang Xueliang, Senior Vice President of Geely, supported Great Wall Motors’ earlier emissions complaint against BYD, calling for transparent resolution of such matters.
Multiple executives criticized the current competitive landscape. Chery’s Chairman Yin Tongyue described price cuts as “a last resort that’s like drinking poison to quench thirst,” while Changan Auto’s Zhu Huarong warned that extreme competition jeopardizes industry health and safety standards.
Global Expansion Without Price War Export
With domestic auto industry profits declining to 3.9% in Q1 2024, forum participants cautioned against exporting price wars overseas. Wang Xia of China Council for Promotion of International Trade warned that international markets have low tolerance for such practices, which could turn growth markets into unprofitable battlegrounds.
Geely’s Li Shufu announced the company would cease building new factories, instead utilizing global excess capacity through cooperation. BYD’s Wang Chuanfu revealed plans to focus capital expenditures on overseas market localization.
Technological Innovation Proposed as Solution
Executives proposed multiple strategies to escape destructive competition:
- Changan’s Zhu Huarong emphasized returning to technological innovation as core value
- VOYAH’s Lu Fang advocated cost reduction through efficiency gains rather than material compromises
- NIO’s Qin Lihong suggested differentiation through original technology and customer experience
Wang Xia outlined three essential corporate boundaries: maintaining quality/safety standards, upholding business ethics, and committing to sustainable innovation. Zhu Huarong predicted the industry would return to rational competition within 1-2 years.
The forum concluded with BYD’s Li Yunfei calling for competition focused on technology and products rather than marketing tactics, urging the industry to “work on the right path.”
Related topics
- BYD Responds to Fuel Tank Controversy and “Auto Industry’s Evergrande” Allegations
- BYD’s Official Response: the Online Rumors are Untrue. We are Currently Providing Support and Assistance to Gancheng Group.
- Top Executives from Several Automakers Have Come Forward to Express Their Views, And “Anti-Crowding” Has Become a Consensus Within the Industry.
