China car wars erupt amid major crackdown as over 100 EV makers predicted to go bust

Some 100 Electric Vehicle (EV) manufacturers, known as original equipment makers (OEMs), need to be "pushed out" from the market, according to BYD's executive vice-president, as the Chinese government cracks down on aggressive discounting. Chinese EV companies have been accused of driving deflation in the industry by slashing prices unsustainably.

Without the ability to offer heavy discounts to lure in customers, "some of the original equipment makers will be pushed out", said Stella Li, BYD's executive vice-president, on the sidelines of the Munich motor show. Seemingly advocating for the crackdown, she added, speaking to the Financial Times: "Even 20 OEMs is too much". In 2024, China counted 129 OEMs, of which only 15 will still be financially viable in five years' time, according to consulting firm AlixPartners.

Meanwhile, new figures show BYD is just behind Tesla in total sales for 2025.

If this trend continues until the end of the year, BYD is likely to close up and pass Tesla,a major boost for the Chinese firm. BYD has established itself in the UK with five models for sale.

Earlier this year, it was confirmed that BYD's Atto 3 remains the company's best-selling model.

Steve Beattie, sales and marketing director, BYD UK, said: "In the past two years, BYD has gone from strength to strength, and I'm immensely proud of the dedication of our team and retailers. Our goal is to bring high-tech, high-value cars to UK customers, and it's fantastic to see more people choosing BYD."

So far this year, 22,574 BYD models have been registered, a staggering 514.76% increase on the same time in 2024. In comparison, 987 Tesla models were registered in July, but the American manufacturer has still shifted 23,708 models so far in 2025, just edging out BYD.