The genesis of this automotive clash dates back to 2023, when Great Wall Motor first lodged a complaint with Chinese regulators. Their allegation: BYD's two best-selling hybrid models, the Qin Plus and Song Plus, allegedly failed to meet national emissions standards. This issue resurfaced last month when Great Wall's chairman, Wei Jianjun, not only voiced concerns about the ongoing price war but also confirmed that the regulatory probe into BYD's emissions remained active.
BYD initially dismissed Wei Jianjun's remarks on the industry's health as "alarmist" and refrained from commenting directly on the emissions issue, reiterating its previous stance that its vehicles complied with China's standards.
However, the dispute gained significant traction this past Saturday when Victor Yang, Geely's vice president, publicly endorsed Great Wall's accusations at an auto conference in Chongqing. Yang asserted that Geely had conducted its own independent emissions tests and arrived at the same conclusions as Great Wall. He notably praised Wei Jianjun as "a genuine, honest person and is our industry’s whistleblower," a statement widely circulated through videos posted online by local media outlets.
At the heart of Great Wall Motor's claims is BYD's use of non-pressurized fuel tanks in its Qin Plus and Song Plus plug-in hybrids. Critics argue that these tanks allow liquid fuel to evaporate more rapidly than their pressurized counterparts, potentially leading to higher emissions.
In response to Geely's public backing, Li Yunfei, BYD's general manager of branding and public relations, addressed the issue on his Weibo account on Sunday. He contended that the non-pressurized tanks utilized in BYD cars between 2021 and 2023 were compliant with the regulatory requirements of that period. Nevertheless, he acknowledged that BYD had since transitioned to different tank systems due to customer complaints. Notably, Li's Weibo post was no longer visible on Monday, with Reuters unable to verify the reason for its removal and BYD offering no immediate comment.
The escalating animosity comes at a particularly sensitive time for China's EV market. BYD's aggressive pricing strategies, which recently saw the starting price of its most affordable model drop to 55,800 yuan ($7,771.05), have triggered a broader downturn in auto stocks and intensified an already fierce price war.
The severity of the market conditions prompted China's Ministry of Industry and Information Technology (MIIT) to intervene. The MIIT recently called for a halt to the price wars and summoned automakers to a meeting last week, as reported by Bloomberg and confirmed by sources familiar with the matter. This regulatory push highlights growing concerns about the sustainability of the current pricing strategies and their potential impact on the industry's profitability and stability. Dealers, too, have voiced their frustration, urging automakers to cease "dumping" excess inventory onto them, further underscoring the strain on the supply chain.
The ongoing dispute between these prominent EV manufacturers, now amplified by Geely's involvement, underscores the fierce competition and growing pains within China's rapidly evolving electric vehicle landscape. The outcome of the regulatory probe and the broader implications of this public spat could significantly shape the future trajectory of the world's largest automotive market.