Core Viewpoint - The article discusses the ongoing price wars in the Chinese automotive market from 2023 to 2025, highlighting the cyclical nature of these price reductions initiated primarily by Tesla and followed by other manufacturers, including BYD, which has significantly impacted both the market and the supply chain [2][3][4][5]. Group 1: Price War Timeline - The first round of price wars began in January 2023 when Tesla announced a price reduction of 20,000 to 48,000 yuan for its Model 3/Y, leading to a chain reaction among competitors like BYD, which launched the Qin PLUS at under 100,000 yuan [3]. - By March 2023, over 40 automakers and hundreds of models participated in the price cuts, with significant reductions such as the Citroën C6 dropping by 90,000 yuan, prompting responses from major brands like Volkswagen and Toyota [3]. - Despite attempts by 16 automakers to halt the price war in July 2023, the competition continued unabated through the end of the year [3]. Group 2: 2024 Price War Developments - In 2024, Tesla reignited the price war, but it was BYD's "electric cheaper than oil" strategy that truly sparked market activity, with the launch of the Qin PLUS Glory Edition DM-i at a starting price of 79,800 yuan, 30% lower than comparable fuel vehicles [4]. - The price war in 2024 unfolded in three phases: early January to March, June to August, and November to December, each featuring distinct promotional strategies [4]. - The impact of the price war extended beyond manufacturers to include parts suppliers and dealerships, resulting in increased challenges for small suppliers and a rise in dealership closures [4]. Group 3: 2025 Market Dynamics - In 2025, expectations for a reduction in price war intensity were disrupted when BYD announced price cuts for multiple models in May, with subsidies reaching up to 53,000 yuan [5]. - Although the price cuts garnered industry attention, consumer demand had diminished due to previous price wars, leading to less urgency in purchasing decisions [5]. - The National Development and Reform Commission monitored price fluctuations closely, implementing measures to regulate market behavior and prevent excessive competition, aiming for healthier market development [5]. Group 4: Overall Market Trends - The price wars from 2023 to 2025 illustrate a transition from aggressive competition to a gradual softening, with market demand slowly being released [5]. - The automotive industry is urged to explore new growth opportunities and business models to achieve sustainable development in the face of changing market dynamics [5].