[DicKy]

Originally Posted by ToThePoint

If we really go by that logic, then why would they create a blood bath in their own backyard?...

Only reason I can think of is already given by BHPians.

Originally Posted by BoredBonnet

unless their main motive is market share gain at any cost. This move might lead to consolidation of the China EV car market among few players [something like what Jio did to India's telco space].

Originally Posted by 84.monsoon

BYD's recent price cuts are a bold move to grab market share and decimate smaller rivals in China. My guess is, it is being done with the consent of the Chinese Government (of course you cannot do much in that country without the government on your side). My guess is, the Chinese government wants fewer, larger and globally competitive players, rather than the current fragmented field with dozens of competitors. Instead of directly arm-twisting and putting the smaller companies out of business, the government may have nudged BYD to use market forces to consolidate the playing field. BYD is quite profitable even with their low pricing levels so far, but they may not be able to make a healthy margin with the latest round of discounting. As soon as they have reached their market share target and wiped out a few of the smaller players, they will may ease back some on some these latest price cuts....

[somersault]

Originally Posted by 84.monsoon

BYD's recent price cuts are a bold move to grab market share and decimate smaller rivals in China.
BYD is able to do this, since their volumes are so huge and range, so wide.

As a nation, we have to nurture Tata and Mahindra, who have made bold investments and big strides into the domestic EV market.

Thanks for sharing this news. I beg to differ and allow me to put my point below.

A Price cut should be a good news for the end customer right. Will the customers not celebrate? Should Indian customers not be benefited by such a move?

If the product is good and if the price is correct, then customers buy the product. It has nothing to do with nation or any specific company. Yes, one can create a branding or anti-branding around the company which could be related to the nation etc. But that alone can not help the product and the company survive and grow. e.g Koo as against Twitter. A free and fair economy should work just like that.

Of course, in an open economy, the scenarios are not that grim. There are inbuilt protections available like competitive commission and not allowing to use profits from one company to cross subsidize newly launched product from different company within the same group. All in theory but.

Tata and Mahindra are not small players. They are established and listed players. They own global brands as well. They have to continue innovate not just in the product but also in the research and on cost reduction without impacting the quality. That is the survival. Every MSME in India is doing the same to survive and it does not get such protection. TATA and Mahindra should not be different. I am aware of the speculative job losses scenario, GDP dependency etc. But that should not lead to protectionism. Unless a company or product is challenged, they will not continue innovating.

I have nothing against TATA and Mahindra and I liked their new EV products. I see that they have the potential to innovate, add features and reduce cost. They are doing that already with their newer launches. They are selling their products globally where no protection can be provided. So why not allow the Indian customers enjoy the benefit of that by some savings.

In our startup world, we are now using the AI based coding and code reviews and that saves the employee cost and reduces the capital outgo. This is our way of survival in the new world where GDP slowed because of the war and tariffs. Let the big players in India do the same.

I am just wondering, when a certain company in India launched free calls and unlimited data plans at dirt cheap rates, was that not predatory pricing at that time. Yet it was allowed and as a result many small players shut their shop. However, for the consumer benefit, it resulted in bringing the overall cost of mobile telephony down. If it was allowed at that time in the name of consumer benefit, please allow this as well in India for the benefit of current and future consumers.

My 2 cents.

[UD17]

The price cut by BYD China is due to huge stock of overproduced and unsold inventory, It has nothing to do with sales strategy. Rather its opposite, the strategy to push over supply to market is now showing its ill-effects.

[ToThePoint]

If you read deeper into the news now, it seems these cuts are part of a promotional campaign till June 25 and not price reduction per se, most likely to meet targets.

Since the beginning of the year, BYD seems to be on a discount spree and this is their biggest move so far.

BYD is in a very comfortable position with regards to world wide sales. They are world no 1 with Tesla at second position but with 50% less sales than BYD. Why BYD has to resort to such tactics is anybody's guess. One thing is sure, it will certainly wipe out startups and small players. Just have a look at this:

[84.monsoon]

Europe is the next frontier for BYD. Tesla's sales in Europe have fallen 37% in the first three months of the year, while BYD's have surged by nearly 300%. They are investing $4.5 Billion and building a mega factory in Hungary to produce over 200,000 cars a year. The battery giant CATL, which is the world's largest manufacturer of EV batteries, is also building a $7.6 billion factory in the country as it seeks to tighten its grip on the continent's battery industry.

Tesla has led the European BEV market for years, BYD officially began operations only about 2 years ago. Yet, they sold more electric vehicles in Europe than Tesla for he first time in April - BYD registered 7,231 battery-powered electric vehicles (BEV) in Europe in April, while Tesla registered 7,165 units.

Tesla's sales have been collapsing around the world in the first quarter of this year. Elon Musk's meddling in politics around the world are really hurting the company. No wonder they are interested in India now, the need to find some new markets where they are sheltered from BYD and can grow volumes at profitable price points. The much touted turning point of driving cars where Tesla was supposed to build a big moat for itself is also nowhere in the horizon.

[notme]

https://www.youtube.com/watch?v=b_L9s27CMow

This video is even more startling, though it's wise to take China Observer's perspective with a grain of caution.

BYD is exporting so called "zero-kilometer used cars," meaning the vehicles are first registered in China likely to qualify for subsidies before being exported abroad.

[rev8]

I've been wondering, could the reduced import duties and discounted price by BYD have a combined effect on the Indian offerings in the future?

Could the already VFM pricing be even more lucrative? I'm imagining a sub-30L Seal.

[whitewing]

It could as well be that they are seeing a drop in demand - perhaps they sniff a downturn in the china market, and are cutting prices to keep the volumes afloat?
Or, as others mentioned, perhaps the chinese market is reaching consolidation phase.

Given the massive market share of BYD, I don't see what they would gain by consolidating the market share. I suspect this is more an anticipatory action to a slowdown in China.