China EV giant BYD on Monday announced significant price cuts on two entry-level vehicles, targeting traditional internal combustion engine (ICE) vehicles. Several other automakers quickly followed with their own price cuts or discounts.
As expected, BYD announced "Glory" editions for the Qin Plus and Chaser 05 sedans, with starting prices of RMB 79,800 ($11,100) for both, a drop of RMB 20,000. The Chaser 05 is a plug-in hybrid. The Qin Plus has PHEV and all-electric BEV versions. The all-electric Qin Plus starts at RMB 109,800.
BYD said it will launch a "Glory" version of its Dolphin hatchback on Feb. 23, with the 2024 Dolphin also getting a larger battery and other improvements.
There is speculation that BYD will cut prices for its popular Seagull BEV, a compact hatchback.
The EV giant said it's targeting ICE vehicles. BYD, which makes its own batteries, is benefiting from plunging lithium prices over the past year.
Hyundai quickly cut the price on a rival ICE sedan to RMB 75,800.
Changan cut its Qiyuan A05, a small PHEV to RMB 78,900.
SAIC-GM-Wuling offered a new variant of its Xingguang hybrid sedan, priced at RMB 99,800 ($13,870). SAIC-GM-Wuling is a joint venture between General Motors, state-owned SAIC and Guangxi (formerly Wuling).
Neta cut EV prices across its lineup by as much as $3,600.
China EV Price War Will Move Up
The new China price war is starting at the low end, but is expected to move higher up the scale over the next few weeks, as BYD and other EV makers launch a bevy of new or refreshed models amid slowing industry growth and a struggling economy.
Li Auto, for instance, will officially launch its Mega minivan, its first all-electric vehicle, on March 1, with deliveries expected to start a few days later. It'll also roll out its 2024 versions of its L9, L8 and L7 SUVs. The L-series models are extended range electric vehicles (EREV), essentially a plug-in hybrid.
BYD Premium Launches
BYD said Monday in a statement that it will release more luxury models in 2024. It'll officially launch its Yangwang U9 supercar on Feb. 25. Other Yangwang, F-Brand and Denza launches are expected.
BYD on Monday also announced discounts for the Denza N7 crossover. Sales have been poor for the premium vehicle since its 2023 launch, with more-advanced driver-assistance software not helping so far.
Significant updates are expected on many BYD models in the coming months, including more advanced engines, hybrid systems and driver-assistance software.
BYD also announced it would buy back some shares, but gave few details. Prior buybacks have been relatively modest.
Tesla kicked off the 2022 China EV price war with big cuts to start the year. In January 2023, Tesla cut China prices modestly on the Model 3 and two variants of the Model Y. The "Highland" Model 3, a modest refresh, has not revived Tesla's sedan sales in China. There are reports that a hoped-for "Project Juniper" Model Y refresh won't launch in 2024.
BYD and Tesla export a lot of EVs from China. Those overseas sales typically have higher prices and margins than in China. But BYD's exports are rising sharply and have surpassed Tesla China's overseas shipments, which have been declining.
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