BYD Launches New EV Model at Lower Price Amidst Competition

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BYD has launched a new version of its popular Yuan Plus crossover, priced lower than the previous model.

China’s leading electric vehicle (EV) manufacturer, BYD, has unveiled a new version of its popular car, the Yuan Plus crossover (known as the Atto 3 internationally), at a price lower than its predecessor. 

This move comes amidst a fierce price war in the world’s largest automobile market, driven by increasing competition among EV manufacturers.

Lower Launch Price:

BYD has set the starting price for the new Yuan Plus crossover at 119,800 yuan ($16,644), 11.8% lower than the final sales price of its discontinued predecessor. 

This aggressive pricing strategy reflects BYD’s efforts to attract customers and maintain its market share amidst growing competition.

Market Dynamics:

The EV market in China is experiencing a cooling trend, prompting manufacturers like BYD to introduce incentives and price reductions to stimulate demand. 

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Rival companies, including domestic competitor Geely Auto and U.S.-based Tesla, are also implementing similar strategies to remain competitive.

Export Strategy:

BYD has been leveraging overseas markets to bolster its profits, with a significant portion of its Yuan Plus EVs being exported. 

In 2023, BYD sold 412,202 units of the Yuan Plus, with 42% of them being exported. This underscores the company’s focus on diversifying its revenue streams and tapping into higher-profit markets abroad.

Price Discrepancy:

Interestingly, the starting price of the Atto 3 in international markets, such as Australia, is significantly higher than in China. 

For example, the Atto 3 is sold in Australia with a starting price of A$48,011 ($31,336), representing an 85% increase over its price in China. This highlights the variation in pricing strategies adopted by BYD across different markets.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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