BYD poised to surpass VW as China’s top car brand as budget EV triggers ‘buying spree’ among millions, analyst says

The Warren Buffett-backed company cut the price of its Seagull model below the level that already attracted 10,000 pre-orders in 24 hours
The reduction ‘will trigger a buying spree’ among millions of young buyers, analyst says

Electric & new energy vehicles

Daniel Renin Shanghai

Published: 7:59pm, 26 Apr, 2023

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BYD, the world’s largest electric vehicle maker, has reduced the price of its new budget model, the Seagull, by 5,000 yuan (US$722) in a bid to attract millions of young Chinese motorists as it edges closer to becoming the mainland’s bestselling auto brand.

The Shenzhen-based company, which is backed by Warren Buffett’s Berkshire Hathaway, announced on Thursday that it will sell the entry-level hatchback at 73,800 yuan, 5,000 yuan less than the pre-order price of 78,800 yuan it offered on April 18.

On April 19, BYD said it received more than 10,000 orders within 24 hours after the presale started.

“Millions of young drivers will be interested to own a Seagull, which is affordable and attractive to them,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “A reduction in price will trigger a buying spree.”

A Volkswagen electric sedan, the ID.7, debuts at an event ahead of the Shanghai Auto Show, in Shanghai on April 17, 2023. Photo: Reuters

The base model has a driving range of 305 kilometres. The company also cut the price of a more expensive version, which can go as far as 405km on a charge, by 6,000 yuan to 89,800 yuan.

The hatchback has a fast charging system that will allow the battery to go from 30 per cent to 80 per cent of capacity in 30 minutes, according to BYD. The company’s renowned BYD blade battery powers the car.

The Seagull is expected to take on a number of low-priced petrol-based cars such as the Toyota Yaris, which starts at 85,800 yuan in China.

‘The advantages are obvious’: how China’s BYD became the world’s No 1 EV maker

The car is yet another example of BYD’s increasing manufacturing and design heft after it launched a luxury model, the 1.098 million yuan Yangwang U8 sport-utility vehicle, at the Shanghai Auto Show last week.

The U8’s appearance evokes comparisons with vehicles from Range Rover. It can accelerate to 100km/h from standstill in 3.6 seconds thanks to the equivalent of a 1,100-horsepower engine, and it can use its four wheel-mounted motors to rotate and crab-walk sideways, according to a demonstration video.

BYD dethroned Tesla as the world’s largest EV maker in 2022 buoyed by strong sales on the mainland. It delivered 1.86 million fully electric and plug-in hybrid vehicles worldwide last year, outselling Tesla’s 1.31 million cars by 42 per cent.

BYD’s crab-walking U8 draws large crowds at Shanghai Auto Show

BYD is also edging closer to becoming China’s biggest carmaker in terms of sales as its expanding product line draws more buyers.

According to data from the China Passenger Car Association, BYD delivered 508,706 vehicles in the first quarter of this year, up 77 per cent from the same period in 2022.

Volkswagen’s two joint ventures on the mainland sold a combined 607,412 units – mostly petrol-powered vehicles – between January and March, down 15.4 per cent year on year.

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Bloomberg reported that BYD already clinched the title of China’s bestselling car brand in the first three months of this year, citing data from the China Automotive Technology and Research Centre.

It said BYD sold more than 440,000 cars on the mainland, while Volkswagen recorded sales of 427,247 units.