BYD is back with its price war. On May 26, BYD’s Dynasty Network announced limited-time subsidies for its intelligent driving models. With “618” car purchase cash subsidies and BYD trade-in discounts, the starting price of its intelligent driving models can drop as low as 63,800 yuan.
Just four days ago, BYD’s Ocean Network also revealed that its intelligent driving models are now available at a limited-time fixed price starting at 55,800 yuan. However, this price requires stacking both national and BYD trade-in subsidies, while the original vehicle prices remain unchanged.
From January to April this year, BYD sold 1.281 million new vehicles, achieving 23.29% of its annual sales target of 5.5 million units. Historically, BYD’s monthly sales tend to rise progressively and peak in the final quarter, making this goal potentially achievable.
Why is BYD launching promotions now? How competitive is it?
Let’s dive in.
A BYD Qin for 40,000 Yuan?
Under the limited-time subsidies, consumers can drive home a BYD Qin PLUS DM-i Intelligent Driving Edition for under 50,000 yuan.
Calculated with maximum subsidies, including the 15,000 yuan national trade-in subsidy, the official starting price of the Qin PLUS DM-i Intelligent Driving Edition drops to 48,800 yuan—1,000 yuan cheaper than the 205km-range Wuling Hongguang MINI EV Four-Door Premium Edition.
This doesn’t even account for potential local subsidies that can coexist with national incentives, potentially pushing the final price of the Qin PLUS DM-i Intelligent Driving Edition to just over 40,000 yuan.
This means consumers can own a compact plug-in hybrid sedan with a claimed 2,000km comprehensive range, dimensions of 4780/1837/1515mm, and a 2718mm wheelbase—all for under 50,000 yuan.
A Caveat
Despite being labeled “Intelligent Driving Edition,” the entry-level Qin PLUS DM-i Intelligent Driving Edition lacks any autonomous driving features. However, other subsidized models like the Qin L DM-i, Song Pro DM-i, and Han DM-i Intelligent Driving Editions all include basic driver-assist functions (e.g., highway navigation, automated parking).
Objectively, even without autonomous driving, the entry-level Qin PLUS DM-i Intelligent Driving Edition—originally priced at 79,800 yuan—remains attractive for its range and spaciousness.
Consumer Concerns
While affordable products appeal to buyers, Chinese consumers also value the principle of “you get what you pay for.” When the Qin PLUS DM-i Intelligent Driving Edition’s price hits the “40,000 yuan” threshold, questions arise about cost-cutting compromises. Some voices worry whether quality and safety have been sacrificed.
Though BYD’s cost-control capabilities are undeniable, safety concerns in EVs remain a critical consumer hesitation. Nevertheless, the Dynasty Network’s direct “cash subsidies” will inevitably lure buyers—sub-50,000 yuan pricing solves practical transportation needs for many families.
Mid-Year Sales Push
BYD’s Ocean and Dynasty Networks appear to be leveraging the “618” shopping festival momentum to boost mid-year sales.
A Sense of Crisis
BYD was notably absent from automotive blogger @孙少军09’s weekly order report. Previous data showed BYD’s weekly orders fluctuating between 70,000-100,000 units, but the blogger noted an overall “week-on-week decline in new orders” industry-wide last week, suggesting BYD may have experienced a dip.
Challenges in 2024
A key competitor is Geely Galaxy. In just two years, Geely Galaxy has sold 1 million units with its mid-to-low-tier models. The Geely Xingyuan, priced from 68,800 yuan, became the January-April 2024 sales champion across all categories. Geely Auto, driven by Galaxy, Lynk & Co, and Zeekr, reported a 2024 net profit of 16.6 billion yuan (+213% YoY) with 2.177 million vehicles sold.
Other rivals like Wuling, Chery, and even EV startups like XPeng (with its M03) are encroaching on BYD’s stronghold in the 80,000-150,000 yuan segment.
BYD’s Response
True to its philosophy of “staying vigilant in times of peace,” BYD is prioritizing market share through aggressive pricing while ramping up its global offensive.
In Q1 2024, BYD exported 214,000 vehicles (+117.27% YoY), claiming sales crowns in Hong Kong, Singapore, Thailand, Australia, Italy, the UK, and Brazil. April exports hit 79,086 units (+92.8% YoY, +16.5% MoM), maintaining exponential growth.
Though BYD’s Q1 overseas sales (214,000 units) still trail Chery (254,000 units), its investments in local factories, dealer partnerships, and even its own cargo ship fleet signal growing global ambitions.
But Competition is Heating Up
Geely, with 90,000 Q1 exports, is pushing to “create overseas hits” and revive sales in Eastern Europe. Chery has entered “Overseas 3.0,” emphasizing localization. Meanwhile, startups like XPeng, Zeekr, and Leapmotor are accelerating global moves, while Li Auto has made international expansion a 2025 priority.
In short, Chinese automakers are eyeing BYD’s turf both domestically and abroad. How will BYD balance its domestic price wars and global ambitions to achieve “win-win” growth in 2025? Only time will tell.
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