The 2025 China Auto Chongqing Forum, which concluded last Saturday under the theme “Shaping the Industry’s Future in an Era of Transformation,” became an unexpected battleground for China’s leading automakers. Representatives from BYD and Geely engaged in a rare public confrontation, shedding light on the increasingly unhealthy competition plaguing the industry.
Unprecedented Public Spat Between Industry Giants
Li Yunfei, BYD’s Brand and PR General Manager, launched the first salvo during his speech. The executive, known for his outspoken comments at industry events, accused competitors of employing “shady tactics” in what he characterized as “foolish and malicious” behavior. This marked a significant escalation from his previous forum appearances where he advocated for measured competition through his “poker table” analogy.
Geely Holding Group Senior Vice President Yang Xueliang responded with equal fervor the following day. Denouncing what he called “suicidal competition,” Yang specifically referenced BYD’s controversial “normal-pressure fuel tank” incident from 2023. He revealed Geely’s own vehicle teardown tests supported Great Wall Motors’ earlier allegations against BYD, praising Great Wall’s chairman Wei Jianjun as “an honest whistleblower for the industry.”
Resurfacing of Controversial Emissions Allegations
The forum reignited discussion about the May 2023 incident when Great Wall Motors publicly reported BYD to authorities, alleging emissions standard violations in several plug-in hybrid models. While BYD maintains its compliance with national standards, the matter remains unresolved despite recent assurances from regulators about forming an investigation team.
In a since-deleted Weibo post, Li Yunfei provided additional context about BYD’s fuel tank solutions while indirectly implicating other manufacturers. He also accused an unnamed Hebei-based automaker of malicious financial reporting allegations against BYD in late 2023, which regulatory investigations reportedly dismissed.
Industry-Wide Backlash Against Destructive Competition
The forum highlighted growing concerns about the automotive sector’s destructive price wars. Data shows over 200 models saw price cuts in 2024 alone, with May witnessing particularly aggressive reductions following BYD’s 22-model promotion with discounts up to ¥53,000.
Wang Xia, Chairman of the China Council for the Promotion of International Trade Auto Committee, warned that profit margins below 4% threaten R&D and service quality. These concerns prompted two industry-wide initiatives in 2023 and 2024 to curb unfair competition, though with limited success.
The Ministry of Industry and Information Technology has recently pledged stronger measures against cutthroat competition, signaling potential regulatory intervention to protect both industry health and consumer interests.
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