BYD Slashes Price of Cheapest EV to £5,712, Intensifying EV Market Competition
Chinese electric vehicle (EV) manufacturer BYD has significantly reduced the price of its cheapest car, the Seagull hatchback, to £5,712, making it 80% cheaper than Tesla’s cheapest model, the Model 3, which sells for £39,990 in the UK. This move is part of a broader price war in China, where BYD announced discounts on 22 of its models until the end of June.
The price cut demonstrates the strides Chinese manufacturers have made in lowering EV costs. China’s EV market has become increasingly competitive, with over 100 manufacturers operating domestically. The move has raised concerns about profit margins, with BYD’s shares falling 5.9% in Hong Kong following the announcement.
Industry experts warn that the intensifying competition may lead to a shakeout in the Chinese EV market. “There’s over 100 manufacturers active in China itself in domestic markets for EVs,” said Rico Luman, a senior economist at ING. “If you look at the margins they are not at a decent level at the moment so it really will hurt.”
The price war in China has implications for global EV manufacturers. BYD has recently gained traction in Europe, outselling Tesla in April. British interest in Chinese-made cars has also surged, with Auto Trader reporting a significant increase in views of Chinese car adverts on its platform.
As the EV market continues to evolve, manufacturers will need to adapt to changing market conditions and increasing competition. The UK market is expected to become increasingly important for Chinese carmakers amid trade tensions with the US and EU.
