A "knockout match" among China's electric vehicle manufacturers has companies pushing suppliers to cut prices by as much as 10%. 

According to a company-wide email from BYD executive vice president He Zhiqi acquired by The New York Times, a "decisive battle" is underway across China's EV market. In the message, Zhiqi called on the company's entire supply chain to work together to reduce costs, while asking that its suppliers cut their product prices by 10% starting in 2025. Based out of China, BYD is currently the largest EV manufacturer in the world. SAIC Maxus Automotive — a Chinese state-owned auto manufacturer — made the same ask of its own suppliers in a letter sent in mid-November, pointing to a need to stand out in a market flooded by low-priced EVs, with as many as 100 different brands competing for dominance. 

In May 2024, BYD released the Seagull, a smaller EV model that sells for the equivalent of $12,000 in China, along with a shorter-range version priced under $10,000. Other Chinese brands have sought to release their own budget vehicles as the country's EV price war has intensified, including Xpeng's $14,000 MONA model, SAIC-GM-Wuling's $8,600 Binguo, and Changli's golf-cart-sized $1,200 Mini EV. 

China's low prices have been helped along by several factors, including lower labor costs, government subsidies that have mitigated upfront costs for manufacturers, and cheaper, domestically-sourced batteries for the vehicles themselves. In total, China accounts for more than 80% of the world's battery manufacturing capacity, along with 60% of the world's EVs.