Price War

Luxeed is offering consumers who buy its cars before July 31 a cash discount of RMB 20,000 ($2,790), becoming the latest participant in China's auto price war.

BYD has slowed production and expansion in recent months, reducing shifts at some of its Chinese factories and delaying plans for new production lines, Reuters reported.

BYD's Stella Li said China's EV price war is unsustainable and explains why the company cut prices.

Tesla is offering Chinese customers who purchase its cars through referral program a discount of RMB 8,000 ($1,110) on optional body paint in June.

The disorderly price war has intensified vicious competition and will further squeeze corporate profit margins, CAAM warned.

Chery is offering discounts on a number of models, with a combined discount of up to 47 percent after subsidies.

Geely Galaxy has started offering limited-time discounts ranging from 8 percent to 18 percent on seven models.

IM Motors and Leapmotor have started to offer new discounts on some of their models.

BYD shares were down 6.53 percent in Hong Kong and 3.89 percent in Shenzhen at press time.

Analysts believe BYD's price discounts could lead to further price competition in China and spark more rivals to follow suit.