China’s EV war: Warren Buffett-backed BYD goes after market left open by Tesla with four cheaper models for budget-conscious buyers

The new Qin Plus is priced between 129,800 yuan and 166,800 yuan, while the Song Plus sports-utility vehicle is priced between 169,800 yuan to 186,800 yuan

BYD also updated two of its existing models: the flagship Tang SUV and the e2 compact car

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Robotic arms at the paint shop of BYD’s Xi’an plant in Shaanxi province on December 25, 2019. Photo: China Daily via Reuters.

Published: 3:15pm, 8 Apr 2021Updated: 3:15pm, 8 Apr 2021

BYD, the battery and car maker that features Warren Buffett’s Berkshire Hathaway as an investor, has launched two new models of electric vehicles and updated two designs that are already on China’s roads to cater for lower and middle-income owners.

The Shenzhen-based company, the second-largest maker of battery-powered electric cars by volume, unveiled the Qin Plus sedan at a price range of between 129,800 yuan (US$19,820) and 166,800 yuan, after deducting for government subsidies to encourage owners to embrace electrification. Continuing its convention of naming vehicle models after the dynastic names of imperial China, BYD priced the Song Plus sports-utility vehicle (SUV) at between 169,800 yuan to 186,800 yuan.

Separately, the carmaker updated its flagship Tang SUV, pricing the 2021 edition at between 279,800 yuan and up to 314,800 yuan. The BYD e2 compact car, often seen zipping around Shenzhen as taxis and hired rides, was given a facelift and upgrade, with the 2021 version priced between 99,800 yuan and 115,800 yuan.

The pricing of three models below the 300,000 yuan threshold that qualifies for state subsidies shows how BYD is going after the lower income bracket, opting to find a market among budget-conscious buyers, fleet operators and second-car owners. The cheapest Model 3 by Tesla, the bellwether marque in China’s EV market, is priced at 249,900 yuan after subsidies.

“Unlike Tesla and its Chinese rivals that focus on the upper market, BYD is offering electric cars that are affordable to China’s middle-income wage earners and price-sensitive drivers,” said Gao Shen, an independent analyst in Shanghai. “In terms of sales volume and market share, BYD will be competitive in this fast-growing EV market.”

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