BYD Faces Double Attack: $7,771 Cars and Emissions Scandal

Sunita  Somvanshi

China's EV giants are at war, and it's getting ugly - with accusations flying about cheating on emissions tests while slashing prices to dangerous lows.

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Great Wall Motor dropped a bombshell in 2023, reporting market leader BYD to regulators for allegedly failing emissions standards on their best-selling hybrids.

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The plot thickened when Geely publicly backed Great Wall's claims, calling their chairman "our industry's whistleblower" at a major auto conference.

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At the center of controversy: BYD's non-pressurized fuel tanks that allegedly let fuel evaporate faster than legal limits allow.

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BYD's PR chief admitted they changed the tanks after customer complaints, then mysteriously deleted his social media post.

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While rivals trade accusations, BYD slashed their cheapest model to just $7,771 - making EVs affordable for millions of Chinese families.

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The price war became so brutal that China's ministry summoned automakers for an emergency meeting last week.

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Car dealers are drowning in excess inventory as desperate manufacturers dump vehicles at unsustainable prices.

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Smaller EV makers are struggling to survive as giants like BYD squeeze margins to razor-thin levels.

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The battle is spilling beyond China's borders as manufacturers look to export surplus vehicles to global markets.

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Auto workers face uncertainty as the industry consolidation threatens jobs across the supply chain.

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Cheaper EVs benefit consumers today, but experts warn the price war could damage China's long-term EV leadership.

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