The price reductions concern both fully electric and so-called hybrid models until the end of June.
The share in industry-leading BYD falls by over 8 percent following the announcement, but competitors such as Li Auto, Great Wall Motor, and Geely Automobile Holdings are also falling with price drops of over 5 percent.
Investors are worried about the increasingly tough competition in the sector and view BYD's June figures as part of what could become a price war, reports Bloomberg.
The stocks of electric and hybrid cars are unusually well-filled – the highest since 2023 – according to the Chinese industry organization CPCA.
