Dispute Between BYD and Great Wall Motor Escalates
Fierce competition among China’s top electric vehicle (EV) manufacturers has intensified with a growing dispute between BYD and Great Wall Motor over emissions compliance. The long-standing issue, which started in 2023, has been reignited after Geely joined in to criticize BYD’s aggressive price cuts, adding fuel to the fire.
The Origins of the Dispute
The conflict began in 2023 when Great Wall Motor reported BYD to Chinese regulators, alleging that its two popular hybrid models, the Qin Plus and Song Plus, did not meet emissions standards. The issue resurfaced last month when Great Wall’s chairman, Wei Jianjun, voiced concerns about the ongoing price war, confirming that the regulatory probe into BYD’s vehicles was still active.
BYD’s Response and Geely’s Support for Great Wall
BYD dismissed these concerns as “alarmist” and rejected the claim that its vehicles failed emissions tests, asserting that they met China’s emission standards. However, on Saturday, Geely’s vice president, Victor Yang, publicly supported Great Wall’s accusations. Yang praised Wei Jianjun as “a genuine, honest person” and described him as the “whistleblower” of the industry.
Emissions Controversy
The core of the dispute centers on BYD’s use of non-pressurized fuel tanks in its hybrid models, which allows the fuel to evaporate more quickly than in pressurized tanks. BYD’s general manager of branding, Li Yunfei, defended the company’s practices on Weibo, stating that the non-pressurized tanks used between 2021 and 2023 were compliant with the regulatory requirements of the time. However, BYD has since changed its designs following customer complaints.
Regulatory and Industry Reaction
The ongoing feud comes as the competition in China’s EV market continues to heat up. In response to BYD’s price cuts, which lowered the price of its entry-level model to 55,800 yuan ($7,771.05), the Ministry of Industry and Information Technology (MIIT) has intervened, urging automakers to halt the ongoing price wars. The MIIT summoned automakers to a meeting last week to address the issue.
Impact on the EV Market
The dispute and the price cuts have caused a sell-off in the stock prices of major automakers, as dealers and manufacturers navigate the fallout from these competitive pressures. The tension highlights the fierce competition among China’s EV makers and the complexities of maintaining both regulatory compliance and profitability in a rapidly growing sector.
