China’s electric vehicle market is facing growing tensions as a long-standing dispute between major automakers escalates.
BYD, Great Wall Motor, and Geely are now locked in a public row over emissions compliance and price wars, adding pressure to an already competitive industry.
The dispute began in 2023 when Great Wall reported BYD to regulators, claiming its popular Qin Plus and Song Plus hybrids did not meet emissions standards. The issue returned to the spotlight last month after Great Wall’s chairman, Wei Jianjun, said the investigation was still ongoing and criticized the ongoing price war.
BYD dismissed his comments as “alarmist” but stood by its claim that its vehicles meet national standards.
Tensions rose further over the weekend when Geely’s vice president, Victor Yang, publicly supported Great Wall’s claims at a Chongqing auto conference. He said Geely had run its own tests and found the same issues with BYD’s cars, which use non-pressurised fuel tanks that can let fuel evaporate faster than pressurised ones.
BYD’s branding chief, Li Yunfei, responded on social media, saying the tanks were allowed under past regulations but have since been replaced due to customer complaints. The post was later deleted without explanation.
As the conflict deepens, China’s Ministry of Industry and Information Technology has yet to comment. The ministry is involved in the emissions investigation and recently called for automakers to stop price wars that are disrupting the market.
BYD’s aggressive discounts, which lowered the cost of its cheapest model to 55,800 yuan ($7,771), have led to a sell-off in auto stocks and raised concerns about the long-term health of the market. Dealers are also calling on manufacturers to stop pushing excess inventory onto them.
