BYD Co. cut the starting price of its best-selling Seal sedan by 10% on Wednesday, as the Chinese electric vehicle (EV) giant seeks to extend its lead in the world’s largest car market with lower prices. The company replaced its model lineup with five new versions. These include the rear-wheel-drive Seal Champion Edition, which can travel 550 kilometers (342 miles) per charge and starts at 189,800 yuan ($27,459). That’s 20,000 yuan cheaper than the older version with the same range, according to BYD’s website.
The new price is also 18 percent cheaper than the rear-wheel-drive version in China of Seal champion rival Tesla Inc.’s Model 3, which has a range of 556 kilometers.
China’s EV market is in the midst of a price war initiated by Tesla earlier this year, with several EV makers including BYD following the example of U.S. automakers in defending the market by lowering prices on this year’s best-selling models share.
“Loss-making independent (new energy vehicle) producers may resist further price competition, but we believe profitable market leaders such as Tesla and BYD still have pricing flexibility to balance supply and demand – both companies will continue to expand aggressively capacity to 2023,” Fitch Ratings analysts said in a note on Tuesday.
BYD, China’s best-selling electric vehicle maker, will launch the Sea Series sedan Seal in July 2022 with sporty styling and smart features.
It sold 19,573 Seal vehicles in the first quarter, compared with a total of 42,782 Model 3 sales in China during the same period, according to the China Travel Association.
The EV price war is also attracting sales of internal combustion engine vehicles as the price gap between the technologies narrows.
BYD has so far led the new energy vehicle (NEV) market with its range of battery-only and plug-in hybrid models priced below 300,000 yuan. It made headlines at the recent Shanghai Auto Show when it unveiled an electric hatchback half the price of the cheapest NEVs available elsewhere.
It has overtaken Germany’s Volkswagen to become China’s best-selling passenger car brand in the past two quarters.
But there were signs of weak demand as BYD cut shifts at two of its auto assembly plants in recent weeks, Reuters reported in March.
First published date: May 10, 2023 at 14:10 PM CST
https://auto.hindustantimes.com/auto/electric-vehicles/indiabound-byd-seal-ev-sees-price-cut-in-china-amid-teslas-price-war-41683707654383.html