Ni Jun, Contemporary Amperex Technology (CATL)’s chief manufacturing officer, has called on Chinese regulators to intervene in the ongoing EV price war, warning that it threatens smaller players in the industry.

Although Ni did not name specific companies, BYD, the largest global EV manufacturer, initiated significant price cuts in May 2025.

Discounts of 10% to over 30% on 22 of its EV and plug-in hybrid models prompted similar actions from competitors.

This affected 70 models that month, according to the 21st Century Business Herald.

Despite CATL’s 38.6% global battery market share and recent US$5.2b Hong Kong IPO, Ni’s remarks reflect rising concern over unsustainable competition.

Geely chairman Li Shufu also criticized deep discounting, cautioning that it could hurt vehicle safety and pushing instead for innovation.

Although China’s government warned it would penalize price dumping, no detailed action has followed, while only a few EV firms remain profitable.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ The Chinese EV market is following classic industry consolidation patterns

China’s EV sector is displaying textbook signs of a maturing industry facing consolidation pressure.

With only half of China’s 20 million units of EV production capacity being utilized according to Goldman Sachs data, the market is experiencing severe overcapacity 1.

Price competition has intensified dramatically, with Chinese carmakers offering average discounts of 16.8% in April 2024, double the 8.3% discounts from a year earlier according to JPMorgan Chase.

The pattern of only three manufacturers remaining profitable (BYD, Li Auto, and Aito) reflects the classic “shakeout phase” of industry evolution, where weaker players struggle to survive as the market matures.

Hozon New Energy Automobile’s bankruptcy proceedings demonstrate this consolidation is already underway, as smaller players lack the scale and financial resources to sustain prolonged price competition.

2️⃣ Price wars create tension between market forces and government intervention

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