Fifth BYD model under 100,000 yuan drives price war
BYD, the world’s largest electric vehicle maker, has priced another model under the 100,000 yuan (HK$109,000) threshold as a discount war in the Chinese market intensifies.
The firm announced yesterday the updated fully electric e2 model would start at 89,800 yuan, 12.6 per cent less than the previous price of 102,800 yuan.
The compact sport-utility vehicle, with a range of 405km, becomes the fifth BYD model available for less than the psychologically important threshold price that is viewed as affordable even for low-income wage earners in the mainland market.
“BYD appears to be extremely aggressive in driving a transition from petrol cars to EVs in the country’s automotive industry,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “The cheap models will also draw middle-income consumers who have become price sensitive amid a bearish economic outlook.”
Among the five models, only the budget Seagull hatchback previously sold for less than 100,000 yuan. BYD marked the entry-level edition of the car down by 4,000 yuan to 69,800 yuan last Wednesday.
Price cuts over the past three weeks have pushed the basic editions of the other four models – the e2, Qin Plus DM-i plug-in hybrid, Dolphin and Chaser 05 – below 100,000 yuan.
Since February 18, BYD has been slashing prices for nearly all of its cars to stay ahead of the competition as sales in the world’s largest electric-vehicle market showed signs of slowing.
Many of BYD’s rivals, including Xpeng, Zeekr and SAIC-GMWuling, General Motors’ threeway venture in China, have followed its move to reduce prices of their bestselling models in the cutthroat market.
BYD delivered 3.02 million pure electric and plug-in hybrid vehicles to customers at home and abroad in 2023, a year-onyear increase of 62.3 per cent.
Most of its sales were on the mainland, with exports accounting for only 242,765 units, or 8 per cent of the total. But the exports represented a 334 per cent jump over 2022.
The company’s deliveries in February slumped nearly 40 per cent month on month to 122,311 units, the lowest since May 2022.
Fitch Ratings warned last November electric-vehicle sales growth on the mainland could slow to 20 per cent this year, from 37 per cent in 2023, because of economic uncertainties and intensifying competition.
Cui Dongshu, general secretary of the China Passenger Car Association, said last month most carmakers were likely to continue offering discounts to retain market share, which could reshape the domestic market.
In China, about 40 per cent of new cars taking to the streets are now powered by batteries, buoyed by drivers’ increasing penchant for electric cars featuring autonomous driving systems and digital cockpits.
In January, BYD announced it would invest 100 billion yuan in developing smart cars, in an apparent effort to challenge Tesla and other mainland rivals such as Nio and Xpeng in the premium segment.
Last week, BYD announced plans to buy back 400 million yuan worth of its mainland-listed shares to lift its stock price.