BYD Launches New EV Model at Lower Price Amidst Competition

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.