China's electric vehicle market is currently experiencing heightened tensions due to a public dispute between major automakers.

BYD, Great Wall Motor, and Geely are embroiled in a public feud over emissions compliance and price competition, intensifying the already cutthroat industry.

The conflict originated in 2023 when Great Wall filed a complaint against BYD with regulators, alleging that its popular Qin Plus and Song Plus hybrids did not adhere to emissions standards. The issue resurfaced recently when Great Wall's chairman, Wei Jianjun, stated that the investigation was ongoing and criticized the prevailing price competition.

BYD refuted Wei Jianjun's remarks as "alarmist" but maintained that their vehicles meet national standards.

Tensions escalated further when Geely's vice president, Victor Yang, publicly backed Great Wall's assertions at a Chongqing auto conference over the weekend. Yang revealed that Geely had conducted its own tests and discovered similar issues with BYD's vehicles, which utilize non-pressurized fuel tanks that may lead to faster fuel evaporation compared to pressurized tanks.

BYD's branding chief, Li Yunfei, responded on social media, stating that the tanks were permissible under previous regulations but have since been replaced due to customer complaints. The post was subsequently deleted without clarification.

As the feud deepens, China's Ministry of Industry and Information Technology has yet to provide a statement. The ministry is overseeing the emissions investigation and recently urged automakers to cease the price competition that is disrupting the market.

BYD's aggressive discounts, which reduced the price of its cheapest model to 55,800 yuan ($7,771), have triggered a decline in auto stocks and raised concerns about the market's long-term sustainability. Dealers are also urging manufacturers to halt the practice of offloading excess inventory onto them.