The Silent Crisis at BYD: A Duck on the Brink

If China’s auto industry were a movie, the current scene would feel eerily apocalyptic. In a stark interview with the Chinese news agency Sina, Great Wall Motors CEO Wei Jianjun painted a grim picture of the future, warning that one major player is already sliding toward bankruptcy. He didn’t name BYD outright, but the implication was sharp. “There’s already an Evergrande in the auto sector. It just hasn’t exploded yet,” he said, referencing the property behemoth that collapsed in 2021.

And if it walks like a duck, quacks like a duck, and carries eighty-one billion dollars in debt, it’s hard to assume otherwise. BYD continues to shine in sales figures, but that glitter could vanish fast if state subsidies begin to dry up. Its debt load surpasses all competitors, and the idea that this trajectory is sustainable rests more on belief than balance sheets.

Wei went further. He offered to fund an independent audit of the entire Chinese auto industry. His reason was clear — to protect years of work and public support that could disappear overnight. Pure electric vehicles, he argued, are not viable. Everyone is selling below cost, and building a business on that logic is chasing a perpetual motion machine.

Great Wall has never hidden its skepticism toward a fully electric future. The company continues to invest in internal combustion engines, and its V8 development program stands as proof. Wei believes hybrids hold the key, with the real work still done by the trusty petrol engine.

If BYD truly falls, this won’t be just another bankruptcy. It will be a rupture across the foundation of an entire industry.