China’s leading electric vehicle maker BYD (BYD) has launched a new version of its best-selling car at a price lower than the previous model, in a clear sign that a price war is raging in the world’s largest auto market.
BYD has already priced a slew of models, alarming rivals Geely Auto and Tesla.
China’s best-selling electric vehicle maker set the starting price of its new Yuan Plus SUV, known as the Atto 3 in overseas markets, at 119,800 yuan ($16,644), BYD said in a Weibo post. That’s 11.8 percent below the final selling price of the version it replaces.
” This suggests that price wars among EV makers are continuing in the hopes of spurring consumer demand and winning competition from Tesla and other industry players. With the price cut for BYD’s new model, its sales revenue will be down 12 percent at the same volume. Therefore, the price of BYD securities should react to this news with a fall. I believe that at the opening of trading in the US, the price of Tesla securities may also come under pressure amid increased competition in the electric vehicle market ,” says Freedom Finance Global analyst Vladimir Chernov.
According to data from the China Association of Automobile Manufacturers, BYD sold 412,202 Yuan Plus electric vehicles in 2023, of which 100,020 were exported, or 42% of its total car exports for the year.
The automaker is counting on overseas markets for higher profits. The Atto 3 is sold with a starting price of AUD$48,011 ($31,336) in Australia, which is 85% higher than in China.
