**Breaking News: Chinese EV Market Faces Crisis Amid Safety Concerns and Price Wars**

In a shocking turn of events, the Chinese electric vehicle (EV) industry is engulfed in turmoil as safety concerns escalate and a brutal price war intensifies. Just days ago, an electric vehicle in Dongguan, Guangdong Province, erupted into flames, sending shockwaves through the community and reigniting fears over the safety of these rapidly proliferating vehicles. This incident follows a series of alarming reports of fires and self-ignition incidents, raising serious questions about the reliability of Chinese EVs.

As the industry grapples with severe overcapacity—production far exceeding market demand—leading manufacturers are scrambling to cut prices to maintain market share. BYD, a major player in the market, has slashed prices on 22 electric and plug-in hybrid models by up to 34%, with some models now priced lower than used cars. This aggressive pricing strategy, however, has sent shockwaves through the industry, prompting analysts to warn of impending financial instability.

At the recent China Automotive Chongqing Forum, industry leaders voiced their concerns, with Giley’s chairman Liu Fu criticizing the sector’s reliance on hype over substance. Meanwhile, Huawei’s executive director highlighted the alarming prevalence of substandard vehicles flooding the market, some of which fail to meet basic safety standards.

The fallout from this price war is already evident. Lee Auto has reported a staggering 60% drop in net profit per vehicle, while Xpeng Motors continues to struggle with ongoing losses despite leading sales among new entrants. The competition is fierce, and with the average price of EVs dropping by over 9% this year, the market is on the brink of collapse.

As consumer confidence wanes, calls for stricter regulations and higher safety standards grow louder. The future of China’s electric vehicle industry hangs in the balance, and unless manufacturers prioritize quality over quick profits, the consequences could be dire for both the industry and the consumers it aims to serve. The urgency of the situation cannot be overstated—time is running out for a sector that once promised innovation but now teeters on the edge of crisis.