BYD kicks off Chinese EV discount derby
The world of electric cars in China just got a lot more nerve-wracking for automakers. BYD has decided to make its already affordable electric cars even cheaper, kicking off what many are calling another intense price war.
China is the biggest automotive market on the planet. Nearly half of all new cars sold in China are now either fully electric or plug-in hybrids. To put that in perspective, the United States is trailing far behind, with less than 10 percent of its new car sales being electric. How did China get so far ahead, so fast? A big part of the answer is simple: cheap electric vehicles.
BYD is making some serious cuts. The BYD Seagull (Dolphin Surf in Europe) hatchback, which was already affordable, costing less than €9,000, saw its price chopped by 20 percent. It now sells for RMB 55,800, which is about €7,010. The biggest discount, however, went to the BYD Seal dual-motor hybrid sedan. Its price was slashed by RMB 53,000, bringing it down to RMB 102,800 (approximately €12,870). In total, BYD announced discounts on 22 of its electric and plug-in hybrid models, valid until the end of June.
The pricing strategy didn't go unnoticed by investors, and BYD's own stock dropped by as much as 8 percent after the news broke. Other major Chinese EV players like Li Auto, Great Wall Motor, and Geely Automobile Holdings also saw their stock prices fall by more than 5 percent. Investors are clearly worried that this price war will squeeze profits across the board.
Chinese EV giant BYD started another price war by drastically cutting the prices of several electric car models, forcing competitors to follow.
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