BYD is joining the price-cutting competition initiated by Tesla earlier this year. The automaker is offering significant discounts on its two most popular models – BYD Song Plus and BYD Seal – to attract customers before the end of March.
According to the promotion, customers who place an order for a brand new BYD Song Plus will receive a discount of RMB 6,800 ($980), while those ordering a brand new BYD Seal will enjoy an even bigger discount of RMB 8,800 ($1,265). However, the offer is only valid for a limited time.
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In February alone, the Song Plus accounted for 52,400 units sold, which is nearly one-third of all cars sold by BYD that month, including hybrids and extended-range electric vehicles. Meanwhile, the BYD Seal sold 7,754 units in February, nearly 3,000 more cars than in January.
While these discounts are appealing to potential buyers, they also raise concerns for existing customers as it can negatively impact the resale value of their cars. Nevertheless, the trend of manufacturers cutting prices to compete in the market is likely to continue until there is no room left to maneuver.
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Unlike Tesla, which has the highest profit margins in the automotive industry, Chinese automakers struggle to remain profitable, with only the largest ones having some room to breathe. Despite China’s heavily subsidized auto market, subsidies will eventually run out, leaving some automakers in the red.
