Over a dozen EV automakers, including Tesla and NIO pledge to avoid further price wars in China
A slew of automakers in China have banded together and pledged to regulate how they market their EVs and avoid further price wars to help stabilize a booming market for consumers. Chinese EV automakers like NIO, XPeng, and BYD have been joined by the likes of Tesla to promote healthy competition and less “bad blood” overseas. But is this good for competition or is this cartel behavior?
It has been happening all over the globe, but the EV price wars in China were truly ignited at the start of this year, as Tesla slashed the MSRPs of its Model 3 and Model Y vehicles by about $7,000 each – sparking concerns over demand for the world’s most popular automaker overseas.
Tesla showrooms were flooded with Chinese consumers the next day, not to buy, but to protest. The American automaker had been slowly increasing the price of all of its EV models in China the past two years without any discounts, then suddenly leaned down to kick off 2023. Customers who had just purchased a shiny new Tesla in late 2022 however, were furious.
Historically, Tesla has increased gross margins with cost improvements and has only adjusted its pricing when it needs to create more demand. On paper, Tesla is already the world’s largest automaker by market cap, but its price manipulation offered a real-world study in global economics as its cuts sent shockwaves throughout the global EV market, including China.
Some automakers like BYD and XPeng scrambled to lower their prices to remain competitive, while others stood their ground. For instance, NIO’s CEO William Li said the company would not partake:
Model 3 and Model Y are less complex in functions and configurations compared to Chinese car brands, such as BYD, so it cuts prices to challenge its rivals. Tesla can fix vehicle prices in the US with a market share of over 60 percent, but not in China, where it holds only about 7 percent.
Whether NIO’s chief wants to admit it or not, Tesla’s strategy worked. The automaker just blew through expectations by reporting over 466,000 deliveries in Q2 of 2023, besting its own record a quarter before. Now however, Tesla looks like it’s ready to play nice with its market manipulation and has joined a dozen other EV automakers in a pledge to help stabilize prices for the good of the consumer.
EV automakers band together to end price wars in China
Earlier today at the 2023 China Auto Forum in Shanghai, the China Association of Automobile Manufacturers (CAAM) has helped facilitate a pledge signed by 16 major automakers vowing to uphold fair market order in their industry.
The pledge is signed by CAAM four months after the association called for a market-wide cooling off of price cuts between competitors, especially as automaker began to use marketing strategies to take digs at other companies in the country. The automakers that signed today include China FAW, Dongfeng Motor, SAIC Motor, Changan Automobile, BAIC, GAC, China National Heavy Duty Truck, Chery, JAC, Geely, Great Wall Motor, BYD, NIO, Li Auto, XPeng Motors, and, last but not least, Tesla. Here’s an excerpt from the commitment letter posted by CnEVPost:
First, we will abide by the rules and regulations of the industry, regulate marketing activities, maintain a fair competition order, and not disrupt the fair competition order of the market with abnormal prices.
Second, we will pay attention to marketing methods, will not exaggerate or conduct false marketing, not to mislead consumers to attract attention and increase customer acquisition.
Third, we will put quality first, use quality-oriented, high-quality products and services to meet the people’s needs for a better life.
Fourth, we will actively fulfill our social responsibility, and take an active role in helping to stabilize economic growth, increase confidence and prevent risks, and work together to make a contribution to national economic growth.
It is important to note, however, that this pricing commitment is self-regulatory and by no means legally binding. Still, it shows good faith among a myriad of different EV automakers in China that should help stabilize price wars overseas… at least for the time being.
FTC: We use income earning auto affiliate links. More.
The Chinese EV giant has issued two separate recalls following an investigation in its home market. With over 115,000 electric and plug-in hybrid vehicles impacted, this is BYD’s largest recall yet.
BYD issues record recall impacting EVs and PHEVs
BYD filed a recall plan with the State Administration for Market Regulation on Friday, October 17, citing design and battery component defects.
The filing included two separate recalls affecting more than 115,000 Tang plug-in hybrid (PHEV) and Yuan Pro electric vehicles.
Effective immediately, the first includes 44,535 Tang series models, produced between March 28, 2015, and July 28, 2017. BYD said the recall is due to component design issues, which can cause the drive motor controller to malfunction, and in extreme cases, fry the circuit board.
The second recall included 71,248 Yuan Pro EV models, produced between February 6, 2021, and August 5, 2022.
Due to manufacturing issues, some vehicles may have insufficient sealing, which can allow water to enter the battery.
BYD said it will fix the issue at the dealership, using a special sealant to reinforce the battery housing of recalled Yuan Pro vehicles, free of charge.
The Yuan Pro has been replaced with the compact Yuan Up, which went on sale in China in February 2024. It sits below the Yuan Plus, sold as the Atto 3 overseas.
The recall follows an investigation by the Chinese State Administration for Market Regulation. BYD has issued several major recalls in the past, including nearly 100,000 Dolphin and Yuan Plus EVs last September, but this is the automaker’s largest to date. BYD also recalled 6,843 plug-in hybrid SUVs under its Fang Cheng Bao brand in January.
BYD’s explosive sales growth propelled it past Volkswagen to become the best-selling automaker in China last year. Although aggressive price cuts helped fuel BYD’s run, they sparked a price war in China, prompting the company to look to overseas markets like Europe and Southeast Asia to sustain growth.
In the first nine months of 2025, nearly nine million battery electric (BEV) and plug-in hybrid (PHEV) vehicles were sold in China, solidifying it as the world’s largest EV market.
Meanwhile, BYD’s monthly sales fell in September for the first time since February 2024 as smaller domestic rivals like Geely, Xiaomi, and XPeng gained market share.
Source: Bloomberg, China State Administration for Market Regulation
FTC: We use income earning auto affiliate links. More.
This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes new models from SUPER73 and Urban Arrow, a stark warning about a danger to e-bikes and other micromobility riders, new e-moto from Stark, Zero goes on a Euro-trip, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):
FTC: We use income earning auto affiliate links. More.
The new new Super E cultivator from Tilmor isn’t just another pice of compact farm equipment – it’s a purpose-built electric cultivator that trades loud diesel clatter for quiet confidence and precision control. Made in the USA and ready to work, it’s proof that electric farming may be closer (and more practical) than you think.
There have been a few electric tractor startups aimed at hobby farmers in recent years, from Solectrac to Seederal to the Volkswagen-backed GenFarm project. Depending on who you believe, these have all been too small, too big, or too far away from production to really make an impact (at least, in North America). The new Super E from Tilmor, however, seems like it might be different.
For starters, the made in the USA Tilmor Super E isn’t looking to replace a traditional ICE tractor and its myriad implements. Instead, it’s a precision tool for cultivating and weeding that offers a superior view of the work being done, low-cost operation, reduced maintenance, and smooth, quiet running.
In other words, the Tilmor delivers a better farming experience for its operators. “A lot of times when we’re cultivating, it’s later in the day and there’s birds and it’s just nice to be able to hear the sounds on the farm rather than the roar of an engine,” Sam Zurofsky, co-owner of Long Season Farm in Kerhonkson, NY told Morning AgClips.
Others seem to agree, as evidenced by the already wide (and growing) range of attachments and implements available for the Super E on the Tilmore website.
Dimensions
The Super E itself is powered by a single 48V 50AH LiFePo4 battery standard, but can carry up to four such batteries for up to eight hours of continuous operating time or for additional weight, according to the needs of the farmer. The Tilmor’s batteries can be charged in about 3 hours on a 12A charger (standard) or under 1.5 hours with an optional 25A charger. Power flows from the batteries to a CFR- 3.5kW AC brushless electric motor and on through a Schafer transaxle – a design that will probably be familiar to any of my fellow Club Car nerds, while hydraulic-assisted steering makes precision operation a breeze.
Super E pricing starts at $19,500. And, as is true with most commercial equipment, you should contact a Tilmor dealer to help spec yours out for maximum success.
Electrek’s Take
To my eyes, farms are a lot like terminal tractors or airport ground support equipment. They operate at low speeds, under heavy loads, close to charging, and in environments that are close to people and animals. It’s just a matter of time before small-scale farmers figure that out.
Unfortunately, small farmers typically keep their tractors a very, very long time – so even if their next tractor is absolutely, 100% going to be electric, my kids might have kids of their own by the time that purchase happens!
SOURCE | IMAGES: Tilmor.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024