Is BYD’s Price War Over? Why the End of Their “Limited-Time Offer” is Not a White Flag

A tremor of speculation has been running through the auto industry recently: is the Chinese EV giant, BYD, finally calling a truce in its aggressive price war? The rumor mill went into overdrive when an internal notice surfaced, suggesting that “all of BYD’s existing discount policies will be terminated on July 1st.”

From my vantage point here in Shanghai, watching this unfold on the ground, the immediate question on everyone’s mind is: Is BYD surrendering, or is this just a tactical pause before the next major offensive?

Let’s cut through the noise and analyze what’s really happening.

Fact Check: What’s Actually Changing on July 1st?

It’s true that the current, high-impact promotion—a “limited-time, fixed-price” deal—is set to expire on June 30th. Sales representatives from BYD’s Ocean and Dynasty networks in Beijing have confirmed this, stating that a “new sales policy will be introduced in July.”

The expiring deal was undeniably aggressive. It targeted 22 “Smart Driving” versions across their vehicle lineups and offered massive discounts. For example, the Haibao (Seal) 07 DM-i model was being sold for 102,800 RMB, a staggering 53,000 RMB (nearly $7,300) below its official list price.

With a promotion this potent coming to an end, it’s easy to see why “the price war is over” became the headline. But a deeper look reveals a very different story.

Analysis: Why This Isn’t the End of the Price War

Let me be clear: this policy change is not a cessation of the price war, but a strategic evolution. The evidence is scattered throughout the reports, if you know where to look.

1. Quarterly Policy Adjustments are “Business as Usual.”
A key piece of context from a salesperson on the ground: “BYD’s sales policies are adjusted every quarter.” This isn’t a sudden, reactive retreat. It’s a standard, cyclical business practice. Ending a Q2 promotion to launch a new Q3 strategy is simply how BYD operates.

2. A “New Policy” is Coming, Not a “Full Stop.”
The language used by the sales staff is crucial. They consistently state that the current policy will be “terminated” and a “new policy” will be implemented. If the goal was to end discounting entirely, the message would be “all discounts are ending.” Instead, they are signaling a shift in tactics, not a complete withdrawal from the fight.

• What Continues: The popular “trade-in subsidy” program will remain in place.

• What’s Likely Ending: The bank-subsidized, “high-interest, high-rebate” loan programs will probably be discontinued.

• The Wild Card: The extent of BYD’s own factory-backed subsidies remains unknown.

This points to a “selection and concentration” of discount methods. BYD is likely moving away from a blunt, direct price cut to more nuanced incentives, such as trade-in bonuses or other value-added offers, to manage both sales volume and profitability.

3. The Ambitious 5.5 Million Sales Target Looms Large.
BYD has set a monumental goal of selling 5.5 million vehicles in 2025. As of the end of May, they had sold approximately 1.76 million units, achieving only 32% of their annual target. To hit their goal, they need to sell the remaining 68% in the last seven months of the year. This is not the time to ease off the accelerator; it’s the time to push harder.

Announcing the end of the “limited-time offer” right before the end of Q2 is a classic sales tactic. It creates a sense of urgency, pressuring customers to buy now before the deal disappears, thereby maximizing end-of-quarter performance.

(Image: A graph showing BYD’s 2025 sales target vs. their current progress.)

Conclusion: Not the End of the War, But the Start of a New Battle

While the news of BYD’s “limited-time offer” ending has created significant market chatter, a comprehensive analysis shows it does not signify an end to the price war.

Instead, this is what’s likely happening:

• A Diversification of Tactics: BYD is shifting from direct, fixed-price cuts to a more varied mix of promotions (trade-ins, financing deals) to better balance profitability with raw sales numbers.

• A Calculated Quarter-End Push: The “deal is ending soon” message is a powerful, time-tested marketing strategy designed to pull forward sales and hit Q2 targets.

• A Continuous Push for Market Dominance: BYD has been relentlessly deploying various forms of discounts across its entire model range throughout 2025. This change is just another data-driven, aggressive strategy, not a retreat.

Therefore, any conclusion that “BYD is stopping the price war” is premature. The real question is what ‘new card’ BYD will play on July 1st. The intense competition in the EV market will continue, simply changing its form.

The war is not over. The battlefield is just shifting.