The price war on electric cars in China is quickly getting out of control. BYD’s executive president, Stella Li, is saying the EV price war, which it essentially created, is “not sustainable” anymore.

BYD exec says the EV price war is not sustainable

BYD has been all over the news after announcing a new round of price cuts last month on some of its top-selling vehicles.

Some of you may have heard of the Seagull EV, BYD’s top-selling (and most affordable) electric car in China. Although it was already among the cheapest EVs with a starting price tag of around $10,000 (66,800 yuan), it’s now available for under $8,000 (55,800 yuan).

BYD slashed prices on 22 vehicles by up to 34%. The discounts triggered a wave of rivals to follow suit, including Geely and Leapmotor.

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The aggressive discounts prompted the China Automobile Manufacturers Association (CAMA) to issue a statement, warning that the lower prices are “triggering a new round of price war panic.”

The organization added that “Disorderly price wars intensify vicious competition, further compressing corporate profit margins.”

BYD’s Li appears to agree. During an interview with Bloomberg this week, Li said that “It’s very extreme, tough competition” in China. BYD’s leader added that the price war is “not sustainable” and that some brands wouldn’t survive.

Li didn’t say if BYD was planning to raise prices. Meanwhile, the company continues to launch low-cost models, undercutting its rivals. BYD launched its new Seal 06 electric sedan earlier this week, starting at just over $15,000 (109,800 yuan), or less than half the cost of a Tesla Model 3 in China.

Even in overseas markets, where BYD is aggressively expanding, it’s offering extremely affordable vehicles. Its new Dolphin Surf, a rebadged version of the Seagull EV, launched as one of the cheapest vehicles in the UK with a starting price of £18,650 (just over $25,000).

BYD has already outsold Tesla in the UK and Europe in monthly registrations. Will the Dolphin Surf’s arrival prompt others in Europe to follow suit? According to analysts, it could actually help drive EV sales.

Lucid (LCID) is housing the first prototypes of its upcoming midsize EV, which will start at about $50,000, in Nikola’s former headquarters. After opening its new Phoenix Hub facility this week, Lucid is taking another big step toward launching its new midsize platform.

Lucid’s first midsize EV models are coming soon

Lucid celebrated the grand opening of its new Phoenix hub this week, adding over 884,000 square feet to its Arizona footprint.

The new facilities, acquired from Nikola in April, will serve as Lucid’s research and development hub as it enters its next growth stage.

“These new facilities provide Lucid with immediate and substantial capacity for advanced manufacturing activities, as well as developing product innovations and testing components and systems,” Lucid’s senior vice president of operations said at the event (via Arizona Commerce Authority).

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The new hub will support Lucid’s main manufacturing plant in Casa Grande as it ramps up production of its first electric SUV, the Gravity.

It will also be home to the first midsize EV models, which Lucid said will launch with prices starting at around $50,000.

According to FOX 10’s Steve Nielson, Lucid’s first midsize EV models are already inside the new Phoenix facility. During an exclusive interview, Nielson said, “Inside of this building are the first prototypes of a midsize SUV that will be priced under $50,000.”

However, other local media have conflicting reports. The Phoenix Business Journal reported that Lucid’s interim CEO, Marc Winterhoff, said the new hub will have “a pilot line where we build the first vehicles for our midsized platform,” but added “that’s currently still in development.”

We got a sneak peek of the midsize SUV last September after Lucid revealed a teaser, showing a blurry outline of the upcoming EV.

Lucid’s midsize platform is slated to enter production in late 2026. The first two models based on the platform are expected to be a midsize electric SUV and sedan, starting at under $50,000.

Former CEO Peter Rawlinson previously said that Lucid’s new midsize EVs are aimed “right in the heart of Tesla Model 3, Model Y territory.” Lucid told Electrek that there will be a third vehicle based on the platform, but didn’t confirm any other details.

For now, Lucid will focus on ramping up Gravity production. The Lucid Gravity GT is available starting at $94,900 with a range of up to 450 miles. Later this year, a more affordable Touring trim will be added to the lineup, priced at $79,900.

Lucid plans to produce 20,000 vehicles this year, more than double the roughly 9,000 it made in 2024. It’s also expanding into new overseas markets, including parts of Europe and the Middle East.

Toyota’s new electric SUV is already off to a strong start. Starting at about $15,000 in China, Toyota’s new bZ3X electric SUV was the best-selling EV among foreign brands in China last month.

Toyota’s bZ3X was the best-selling foreign EV in May

After a slow start (to put it nicely), Toyota is now looking to capture its share of the world’s largest electric vehicle market. The Japanese automaker launched a series of new low-cost electric cars that are already helping it turn things around in China, one of its most important markets.

Toyota’s joint venture, GAC Toyota, launched the bZ3X in March, starting at just 109,800 yuan, or about $15,000.

The bZ3X is Toyota’s “first 100,000 yuan-level pure electric SUV” and most affordable EV so far in China. So far, the low-cost electric SUV looks to be a hit.

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Toyota’s new bZ3X electric SUV was the best-selling foreign-owned vehicle in China in May with 4,344 units sold. The Volkswagen ID.3 was second, with 4,217 units, while Nissan’s new N7 sedan ranked third, with 3,034 units. Rounding out the top five were BMW’s i3 (2,605) and the VW ID.4 CROZZ (2,600).

After launching the new low-cost EV on March 6, GAC Toyota claimed the bZ3X was “so popular that the server crashed” with over 10,000 orders in an hour.

At the end of April, Peng Baolin, General Manager of Sales at GAC-Toyota, said the company had already delivered over 10,000 bZ3X models to customers. Baolin added that the electric SUV had another 12,000 pending orders at the time.

At 4,645 mm in length, 1,885 mm in width, and 1,625 mm in height, the bZ3X is about the same size as the BYD Yuan Plus (sold as the Atto 3 overseas).

The bZ3X is available in seven different trims. Five of them do not include a LiDAR, while the other two do, making Toyota the first joint venture brand to offer one in China. Upgrading to the LiDAR variants costs 149,800 yuan ($20,500).

It’s offered with two battery options: 50.03 kWh and 67.92 kWh, which offer CLTC driving ranges of 430 km (267 miles) and 610 km (379 miles), respectively.

The interior is an upgrade from most Toyota vehicles we are accustomed to, featuring a simple yet tech-heavy cabin. A 12.3″ infotainment screen sits at the center with an added 8.8″ driver cluster.

GAC Toyota designed the interior for more than just getting from one place to another. With nearly 10 feet (3 meters) of space with all seats folded, the bZ3X offers “a mobile space that is as comfortable as home.

Equipped with Momenta’s 5.0 smart driving system, the electric SUV offers ADAS features like Level 2 assisted driving, remote parking, and more.

Toyota said earlier this year that “2025 is the starting point of a new 60th anniversary for Toyota China.” By partnering with local companies, “We will define products with Chinese wisdom, promote innovation at Chinese speed, and let the Chinese market drive Toyota’s global evolution.”

Electrek’s Take

Toyota is finally gaining some traction in China with advanced new electric vehicles, custom-tailored to the market.

During its Tech Day event held on Thursday, GAC Toyota announced several new partnerships with some of China’s biggest tech leaders, including Huawei, Xiami, and Momenta.

The new alliances will help Toyota build an entire ecosystem centered on software, smart driving, AI, and other EV tech as part of its new “China R&D 2.0” strategy.

Toyota’s new vehicles are already helping turn things around in China. In April, the Japanese automakers’ sales rose 20% year-over-year, with nearly 143,000 cars sold. Toyota attributed its success to the shift to new energy vehicles and strong dealership promotions.

Through May, Toyota’s sales in China are up 7.7% with 530,000 vehicles sold. With several new EVs rolling out, including the bZ3X and its new bZ5, which launched this week, starting at about $18,000. At about the same size as the Tesla Model Y, but only half the cost, will it see the same demand? We’ll find out soon as delivery and sales numbers are released.