BYD Co Ltd (002594. SZ) lowered the beginning price of its best-selling Seal sedan by 10% on Wednesday to expand its lead in the world’s largest car market.
The firm introduced five new models. A rear-wheel drive Seal Champion Edition with a 550-km (342-mile) range per charge costs 189,800 RMB ($27,459). BYD’s website says it’s 20,000 yuan less than a prior version with the same driving range.
The new pricing is 18% lower than the rear-wheel drive version of Tesla Inc.’s (TSLA.O) Model 3 in China, with a 556 km driving range, which the Seal Champion competes against.
Several EV manufacturers, including BYD, are dropping prices for their best-selling models to protect market share in China’s EV industry, which Tesla launched earlier this year.
“Loss making independent (new energy vehicle) producers are likely to resist further price competitions, but we believe profitable market leaders such as Tesla and BYD still have the pricing flexibility to balance demand and supply – and both companies will continue to expand production capacity aggressively in 2023,” Fitch Ratings analysts wrote on Tuesday.
In July 2022, China’s best-selling electrified vehicle producer BYD debuted the Seal sedan under its Ocean series with a sporty look and smart features.
The China Passenger Car Association reported 19,573 Seal sales in the first quarter, while the Model 3 sold 42,782 units.
As EV prices fall, internal combustion engine sales are falling too.
BYD’s battery-only and plug-in hybrid NEVs under 300,000 yuan have topped the market. In addition, it debuted an inexpensive electric hatchback at the Shanghai Autoshow.
It outsold Volkswagen as China’s top passenger car brand in the previous two quarters.
In March, BYD decreased shifts at two vehicle assembly factories in recent weeks, Reuters reported, indicating weakening demand.
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