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EV giant BYD denies rival GWM's emission test claims

Huang Yixuan
China's automotive industry has been rocked by a public complaint lodged by Great Wall Motor against BYD, and the latter has given a swift response.
Huang Yixuan
EV giant BYD denies rival GWM's emission test claims
Imaginechina

China's automotive industry has been rocked by a public complaint lodged by Great Wall Motor against BYD, and the latter has given a swift response.

Chinese auto maker Great Wall Motor (GWM) on Thursday posted an announcement of its complaint against BYD, alleging that the electric vehicle manufacturer used low-pressure fuel tanks in its Qin PLUS DM-i and Song PLUS DM-i models, which has contributed to non-compliance with pollutant emission standards.

The whistleblower has submitted a report of the alleged misconduct to the Ministry of Ecology and Environment, as well as to the State Administration for Market Regulation and the Ministry of Industry and Information Technology, it said.

BYD responded to the allegations by stating that it strongly opposes any form of unfair competition and that the test results submitted by GWM are invalid as they did not meet the required conditions.

According to the statement issued by BYD, the vehicles used for testing were supplied and handled by GWM, and the test was carried out by an organization designated by GWM, instead of a third party as required under national rules. As a result, BYD claims that the test results lack credibility and cannot be used as evidence to support the allegations.

"We welcome authorities to investigate, collect evidence and conduct inspections at any time," it said.

The news of the complaint has led to a significant drop in the stock prices of both companies. BYD's A shares fell 2.41 percent, while its Hong Kong-listed shares declined 3.87 percent. Meanwhile, GWM's A shares and Hong Kong-listed shares dropped nearly 6 percent and 6.6 percent, respectively.

The Qin PLUS DM-i and Song PLUS DM-i are BYD's best-selling models, both accounting for more than 30 percent of the company's sales in the first four months of this year.

The Qin PLUS DM-i, in particular, has been a remarkable success story, with sales reaching 31,734 units in April, making it the best-selling sedan that month. The two models' combined sales volume in the first four months of this year exceeded 24 percent of BYD's total sales.

According to data from the China Association of Automobile Manufacturers, BYD's market share in the new energy vehicle market was 34.3 percent, making it the market leader. In contrast, GWM ranked tenth in the same category.

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