BYD Revolutionises Electric Vehicle Market with Affordable Smart EVs
China's leading electric vehicle manufacturer, BYD, has made a groundbreaking move by introducing advanced autonomous driving features in most of its models, with some priced as low as US$9,555. This strategic pricing places BYD well below competitors like Tesla and is anticipated to ignite a new phase of price competition in the electric vehicle sector.
During a live-streamed event from Shenzhen, BYD founder Wang Chuanfu announced that the company's "God's Eye" advanced driver-assistance system is now standard in all BYD-branded models priced above 100,000 yuan ($13,688). Additionally, three models priced below 100,000 yuan, including the Seagull starting at 69,800 yuan, have also been equipped with this cutting-edge system. Sales of these 21 models commenced immediately after the event, marking them as the "first batch."
Previously, BYD had reserved such advanced features, allowing cars to autonomously navigate highway traffic under human supervision, for models priced from US$30,000 onwards. In contrast, Tesla's EVs with similar capabilities in China start at $32,000. This move by BYD is seen as a significant step towards democratising access to advanced technology in vehicles, potentially sparking a price war in the market.
Yale Zhang, managing director at Automotive Foresight, highlighted the significance of BYD's approach, stating, "The biggest revelation from BYD is that they want to equalise the right to technology. Technology does not need to be high-end, and they can fight a price war here." This move echoes the disruptive nature of Chinese AI startup DeepSeek, which recently revealed cost-effective AI models that rival those of Western tech giants.
John Zeng, head of market forecast for China at GlobalData, noted that BYD's shift towards smart driving features reflects a strategic move to boost sales, which reached 4 million units last year. This transition is expected to elevate BYD's sales to new heights and put pressure on competitors like Xpeng to keep up with the trend of affordable EVs with advanced driver-assistance systems.
The anticipation surrounding BYD's foray into smart driving technology has already had a significant impact on the market, with the company's shares rising by 16% since reports surfaced about the event last week. This move by BYD follows its history of driving fierce price competition in China's auto market by consistently offering discounts on its vehicles, including popular models like the Dynasty and Ocean series.
Wang Chuanfu, in his presentation, emphasised the transformative role of smart driving features in the automotive industry, likening them to essential safety features like seatbelts and airbags. He envisions smart driving becoming a hallmark of Chinese cars, driving innovation and data accumulation in the sector. BYD has also integrated DeepSeek's AI models into its Xuanji smart car architecture, further solidifying its commitment to advancing AI technology in vehicles.
BYD introduces advanced autonomous driving features in most models, with prices starting below US$10,000.
The move undercuts competitors like Tesla and is expected to trigger a new price war in the electric vehicle market.
BYD's founder emphasises the importance of smart driving technology in shaping the future of Chinese cars.
Source: REUTERS