BYD (HKG: 1211, OTCMKTS: BYDDY) has implemented salary increases for its R&D staff, becoming the latest Chinese company to after CATL as China continues its efforts to curb excessive competition and boost consumption.
Reports of BYD raising salaries for R&D personnel are accurate, local media outlet Cailian cited the company as saying in a report today.
Recent rumors suggest most BYD employees received monthly salary increases ranging from RMB 500 ($71) to RMB 1,000, while a smaller group saw raises between RMB 2,000 and RMB 3,000.
BYD did not directly address the reported salary increase amounts, Cailian noted.
BYD employees have two annual salary adjustment windows and one promotion opportunity each year.
Founded in February 1995, BYD has grown into one of China's largest automakers, employing over 900,000 people with nearly 110,000 R&D personnel.
Earlier this month, CATL announced a wage increase for production workers, raising the monthly base salary by RMB 150 effective January 1, 2026.
CATL employed 131,988 people as of the end of 2024, including 96,725 frontline production workers.
BYD and CATL's wage increases come as China pushes to reduce excessive competition across industries and attempts to boost consumption.
Over the past few years, competition in the EV sector has intensified significantly, fueling a rat race. In China, this race to the bottom is often referred to as "involution."
The primary cause of involution is dominant companies pursuing excessive competition, which can be addressed, Dong Yang, former executive vice-chairman of the China Association of Automobile Manufacturers (CAAM), said in an article published on WeChat today.
If a company prioritizes its own growth without safeguarding the collective interests of the industrial chain or disregarding industry competition order, that constitutes involution, he wrote.
Looking back at 2025, the most significant event impacting China's auto industry development is undoubtedly the governance of involution, he said.
($1 = RMB 7.0374)
