BYD’s luxury sub-brand, Yangwang, has unveiled its third model, the U7, marking a potential shift in the luxury electric vehicle market. This new offering is positioned as a mid-to-large premium sedan with a price point significantly lower than its predecessors, setting the stage for a possible disruption in the Chinese automotive landscape.
With a starting price of CNY628,000 (approximately USD86,450), the U7 is available in both pure electric and plug-in hybrid versions. According to the company, the vehicle boasts two seating configurations, one with four seats and another with five. This launch follows the introduction of Yangwang’s two previous models, which were priced above CNY1 million (USD137,000) each. The U8, a sports utility vehicle, began deliveries in November 2023, and the U9, an all-electric supercar, was launched shortly after.
BYD Chairman and President Wang Chuanfu highlighted that the U7 is equipped with the YunNian Z, an electric vehicle suspension system. This system leverages electromagnetic technology, similar to that used in magnetic levitation trains. Wang noted that this technological advancement aims to fill a gap in vertical electric control.
This move by BYD and the Yangwang brand is especially significant in the Class D sedan market. This segment, typically dominated by established foreign automakers producing fossil fuel-powered vehicles, now faces a new, tech-forward competitor. Data from the China Passenger Car Association shows a surge in sales for Class D new energy passenger vehicles, increasing by 79 percent year-over-year in January, the largest increase among all car market segments.
During a recent earnings conference call, Wang Chuanfu also projected that BYD’s sales would climb 29 percent this year to 5.5 million units, with overseas sales expected to exceed 800,000 units. Wang emphasized that high-end new energy vehicle (NEV) models will be integral to achieving these goals.
