Hu Xiu·2025-05-26 04:30Core Viewpoint - A new round of intense competition is expected to sweep through the Chinese automotive market, primarily driven by BYD's recent promotional strategies aimed at countering market pressures from other automakers [1][17]. Group 1: Promotional Strategies - BYD has launched a new promotional campaign offering "limited-time fixed prices" on 22 of its main products, with discounts that significantly lower prices compared to official guidance [2][15]. - The promotional activities for BYD's "Dynasty" and "Ocean" series differ in structure, with the "Dynasty" series focusing on cash discounts and manufacturer subsidies, while the "Ocean" series includes national subsidies [14]. - The promotional period runs from May 23 to June 30, indicating a strategic push to boost sales during this timeframe [14]. Group 2: Market Context - The automotive market in China has been relatively calm for nearly two months, but BYD's actions are likely to reignite a price war among competitors [17]. - The decision to implement these promotions is partly a response to competitive pressures from other automakers, which have been increasing their market presence and offering attractive pricing [18][35]. - The overall market demand for automobiles has shown signs of weakness, necessitating aggressive sales strategies to maintain market share [40][45]. Group 3: Competitive Landscape - Competitors like Geely have introduced models that directly challenge BYD's offerings, leading to a decline in sales for BYD's "Dolphin" and "Seagull" models [35][36]. - The competitive environment has shifted, with both domestic and joint venture automakers adopting strategies that mirror BYD's focus on comprehensive cost-performance ratios [37]. - The intensifying competition has forced BYD to abandon its previous strategy of subtle price adjustments in favor of more overt promotional tactics [40][47].