Investing.com -- Chinese car manufacturers saw their shares drop on Monday after industry leader BYD introduced new incentives for over 20 models and the CEO of Great Wall Motors expressed concerns about the health of the global automotive industry.

Hong Kong-listed shares of BYD Co (SZ:002594) Ltd-H (HK:1211) Ltd saw an 8.6% drop at closing, while Geely Automobile Holdings Ltd (HK:0175)’s stocks fell by 9.5%. Other companies, including Nio Inc Class A ADR (NYSE:NIO) and Zhejiang Leapmotor Technology Co Ltd (HK:9863) closed between 3% and 8.5% lower, respectively.

The ongoing price war in the world’s largest car market has been escalating. Automakers have been reducing prices and offering features once considered premium, such as smart assisted driving, at no extra cost.

Over the past weekend, Chinese electric vehicle leader BYD announced a new series of subsidies and incentives for more than 20 models. This move brought down the starting price of its cheapest model, the Seagull hatchback powered by a pure battery, to 55,800 yuan ($7,765).

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