Recently, the latest model of BYD’s Yuan Plus is being sold in China starting at about 120,000 yuan (about $16,660), which is about 12% cheaper than the previous model.
According to the media, the price war of electric vehicles is currently accelerating in China, and overall sales volume is decreasing. BYD’s competitor XPeng had reached its lowest sales volume in three years, so it temporarily lowered its prices to create a turning point. Geely Auto also reduced the prices of the Galaxy L6 and L7 models by 15% and 9%, respectively.
Tesla also highlighted pricing incentives for Chinese customers, announcing that discounts of up to 34,600 yuan (about $ 4,803) can be applied to Model 3 or Model Y orders until the end of March this year.
BYD, backed by Warren Buffett, sold 3 million vehicles globally last year, making it one of the top 10 automakers. As of the fourth quarter of 2023, BYD ranked as the world’s largest electric vehicle seller, selling 526,409 units compared to Tesla’s 484,507 units.
In addition to dominating the affordable EV market, the company is also pursuing to enter the $233,000 electric supercar market.
According to reports, Chinese electric vehicles currently sold in the US are subject to a 25% tariff, making it very difficult for them to compete with vehicles manufactured in the US. In response, BYD stated, ” We have no plan to enter the US.”
Tesla CEO Elon Musk warned, “If there were no trade barriers, Chinese electric vehicle automakers would have ‘destroyed’ their Western competitors.”
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