Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
In a bold move that could redefine the automotive landscape, BYD (OTC:BYDDY) and Xiaomi (OTC:XIACF) have launched their race to make EVs more affordable than their gasoline counterparts.
What Happened: BYD, which overtook Tesla Inc. (NASDAQ:TSLA) as the largest EV manufacturer globally in the last quarter of 2023, is now focusing on competing with internal combustion engine (ICE) vehicles rather than other EV makers. Based on 36kr, Electrek noted on Monday that BYD is reportedly focusing on mobilizing all of its strengths in technology and upstream and downstream industry chains to fight a “liberation battle” over the next three years. The decision was made during an internal meeting to make EVs more affordable than gasoline cars.
BYD will reportedly update its Dual Model hybrid system and its all-electric e-Platform. Most of its vehicles are based on the e-Platform 3.0, which boasts a range of up to 620 miles.
Last month, BYD introduced the Qin Plus EV and PHEV models, with prices starting as low as $11,000. Moreover, they recently slashed the starting price of the new version of Seagull EV by 5.4%, to about $9,696, as compared to its former version in China.
Meanwhile, Xiaomi is gearing up to enter the competitive EV market with the launch of the SU7 electric sedan on Mar. 28. The company has expressed readiness to face the price war in China’s EV sector, as reported by the Securities Times.
Why It Matters: The EV market in China is rapidly expanding with many options, including the Shenlan SL03, Nio (NYSE:NIO) ET5, and Zeekr 007, among others. This surge in competition comes alongside a trend of new models offering better features at lower prices, fueling the ongoing price war.
The average transaction price for an EV dropped significantly in February 2024, according to Kelley Blue Book. This price reduction is making EVs more accessible despite potential hidden tax burdens for EV owners.
However, the competitive landscape in China’s EV market is leading to a decline in deliveries. In March, major EV players, including BYD and Tesla, saw a drop in their shares following the release of February delivery figures by the China Passenger Car Association.
Amid this slowdown, Chinese EV manufacturers are getting creative to attract buyers. Companies are introducing features like in-car beds and kitchens, challenging Western automakers and potentially changing consumer expectations.
Read Next: Elon Musk’s Brother Kimbal Says He Wasn’t Happy With GM Killing Its ‘Ugly As Sin’ Electric Car
Photo via Shutterstock
Engineered by Benzinga Neuro, Edited by
Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.