A tense exchange between two major Chinese electric vehicle manufacturers in recent days highlights the pressures they face as a price war in the industry intensifies. It all started on Saturday, when Yu Chengdong, the chairman of Huawei’s smart car unit, implied that rival EV maker BYD is racing ahead because of low prices rather than the quality of its cars. “Currently, BYD is … number one in the rat race, because it has extremely low costs,” he said at a public forum in Shenzhen.
But I feel that if Mr Yu can make fewer comparisons, either at press conferences or public forums, more people will like him, and Huawei’s brand would also gain points,” Li Yunfei, general manager of branding and public relations at BYD, said in a video post on Weibo on Thursday. Li pointed out that Huawei is also trying to “compete with low prices,” as the company has made significant price cuts in the past year.