“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 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 EV sales in the world’s largest market showed signs of slowing.
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‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
BYD delivered 3.02 million pure electric and plug-in hybrid vehicles to customers at home and abroad in 2023, a year-on-year 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 that EV sales growth could slow to 20 per cent in mainland China this year, from 37 per cent recorded in 2023, due to economic uncertainties and intensifying competition.
Smartphone maker Xiaomi dials into China’s EV market with much-awaited SU7
Smartphone maker Xiaomi dials into China’s EV market with much-awaited SU7
Cui Dongshu, general secretary of the China Passenger Car Association, said last month that 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.
