Tensions between two of China’s major automakers surfaced publicly on Friday after a BYD executive rejected recent warnings about the industry made by Great Wall Motor’s chairman.
The dispute began after Great Wall Motor Chairman Wei Jianjun warned last week that China’s auto industry was becoming “unhealthy” due to intensifying price competition. Wei likened the sector’s risks to those that led to the collapse of property developer Evergrande but did not name specific companies.
The comments triggered a drop in shares of Chinese automakers, including BYD, Nio, and XPeng. Industry concerns have mounted as automakers continue offering steep discounts to maintain sales volume.
In response, BYD General Manager for Branding and Public Relations Li Yunfei dismissed the Evergrande comparison. In a Weibo post on Friday, Li defended BYD’s financial position, noting its 70% debt-to-asset ratio and total debt exceeding 580 billion yuan.
He cited comparisons to global companies such as Ford, Boeing, and Toyota and said the company’s high debt reflects rapid growth.
Li also said BYD had submitted information to authorities and intends to pursue legal action against online users spreading speculation that Wei’s remarks referred to BYD.
Other automakers have echoed Wei’s concerns. Changan Chairman Zhu Huarong said at a shareholder meeting on Tuesday that Wei’s comments served as a reminder for the industry to pay closer attention to risk management, according to local media.
This is not the first time BYD and Great Wall Motor have clashed publicly. In 2023, Great Wall Motor reported to regulators that two of BYD’s hybrid models failed to meet emissions standards. Later that year, BYD called for the industry to challenge global competitors, prompting criticism from Great Wall.
Despite concerns raised by executives, the price war among Chinese automakers has continued. Several manufacturers, including BYD, introduced new incentives this week to stimulate demand.
