People stop by the booth of the Chinese carmaker BYD during an auto show in Hangzhou in east China's Zhejiang province on July 1. Photo: Long Wei/Feature China/Future Publishing via Getty Images
Chinese officials signaled Wednesday that they're poised to rein in the feverish price war taking place in the country's booming electric vehicle industry.
The Cabinet issued a statement saying it'll take steps to address the "phenomenon of irrational competition" in the sector, state media reported, according to Reuters and Bloomberg.
State of play: China's blistering EV race has been undercutting foreign automakers on price, pummeling the likes of Tesla, GM and Volkswagen on domestic soil and abroad.
Last week, for example, BYD reportedly lowered the price of a starter EV to less than $8,000. Tesla's cheapest vehicle in China is more than three times more expensive.
"To hit such low prices, suppliers say the company and others like it are squeezing them by demanding lower prices and dragging out payment periods," WSJ reported.
What to watch for: How BYD — the world's biggest EV maker and Tesla's archrival — responds.
