China’s EV industry faces turbulence amid BYD emissions dispute and price war

By Alimat Aliyeva

Competition among China’s top electric vehicle (EV) makers is heating up as a long-running emissions controversy involving BYD and Great Wall Motor reignites, with Geely now entering the conflict and publicly challenging BYD’s pricing strategy, Azernews reports via Reuters.

The dispute originated in 2023 when Great Wall Motor accused BYD of regulatory violations, alleging that its popular plug-in hybrid models — the Qin Plus and Song Plus — did not meet national emissions standards. Great Wall filed a formal complaint with Chinese authorities.

Tensions flared again in May 2025, when Great Wall chairman Wei Jianjun revisited the issue during a public appearance. He warned that an ongoing price war, largely fueled by BYD’s aggressive markdowns, could destabilize the broader EV sector. He also confirmed that the emissions investigation against BYD remains active.

BYD dismissed Wei’s remarks as "alarmist" but refrained from addressing the emissions allegations directly. The company has previously denied any wrongdoing, insisting its vehicles comply fully with Chinese emissions laws.

The controversy deepened over the weekend when Geely's Vice President Victor Yang sided with Great Wall at an auto industry conference in Chongqing. Yang revealed that Geely had conducted independent tests that corroborated Great Wall’s claims.

"Wei Jianjun is an honest man and a whistleblower for the entire industry," Yang said during his speech, which was widely shared by Chinese media, including The Paper.

The emissions concerns center on BYD’s use of non-pressurized fuel tanks in its hybrid models manufactured between 2021 and 2023. According to Great Wall, these tanks allow more fuel to evaporate compared to pressurized systems, possibly resulting in higher emissions.

BYD executive Li Yunfei acknowledged on Weibo that such fuel tanks had indeed been used during that period. However, he emphasized they met all regulatory standards at the time and noted the company had since switched to a new tank design in response to customer feedback — not due to regulatory pressure. Interestingly, Li’s post had been removed from Weibo as of Monday, and BYD declined to provide further comment to Reuters.

Great Wall and Geely also refrained from issuing additional statements, with Geely directing inquiries to Yang’s earlier speech.

This dispute unfolds against the backdrop of an escalating price war in China’s EV market. BYD’s recent move to slash prices, including dropping its entry-level model to just 55,800 yuan (about $7,770), triggered a selloff in auto stocks and heightened concerns about financial instability within the sector.

In response, China’s Ministry of Industry and Information Technology (MIIT) reportedly held a closed-door meeting with automakers last week, urging them to rein in aggressive discounting and preserve market order.

Auto dealers have also voiced frustrations, accusing manufacturers of dumping excess inventory onto them — a practice they say is eroding profit margins and consumer trust.