Recently, the second largest electric car manufacturer in the world, BYD, has been continuously reducing prices for its models in the Chinese market. Yesterday, on March 6, 2024, BYD continued to “add fuel to the fire” by reducing the price of its cheapest electric car.
Accordingly, BYD has reduced the price by 5% for the Seagull model in the Chinese market. After the reduction, the price of the BYD Seagull starts at 69,800 Chinese yuan (about $9,700 or 239 million VND).
For the above amount, Chinese customers will receive a compact hatchback electric car with a wheelbase of 2,500 mm. The car is equipped with relatively full features such as a 5-inch technical instrument panel, a 12.8-inch touchscreen that can be rotated horizontally or vertically, electronic parking brake, adaptive cruise control system, automatic emergency braking, traffic sign recognition, and lane departure warning.
The BYD Seagull has a size similar to an A-segment urban car
The “heart” of the BYD Seagull is a powerful electric motor with 55 kW (about 75 horsepower) and 135 Nm, helping the car reach a maximum speed of 130 km/h. The car has 2 types of LFP batteries with capacities of 30 kWh and 38 kWh, providing corresponding driving ranges of 305 km and 405 km according to CLTC testing cycle in China. With a DC fast charger, the charging time to reach 80% is only about 30 minutes.
The interior of the BYD Seagull
Since Tesla sparked the price war in the Chinese market last year, BYD has responded enthusiastically. This has helped BYD beat its American rival and become the largest electric car manufacturer in the world in the fourth quarter of 2023. However, it must also be mentioned that most of BYD’s cars are sold in the domestic market.
From the beginning of 2024, BYD has started a new price reduction campaign. Before the Seagull, BYD had reduced the price by 12% for the Yuan Plus model in the international market. Not only reducing the price more deeply, BYD also applies this policy to more models compared to its competitors.
In the context of the world’s second largest economy growing unevenly, the sales of new energy vehicles such as pure electric vehicles and plug-in hybrids, including exports, in China are expected to increase by 13% to 11.5 million units this year. This rate is much slower than the 38% growth rate in 2023.
In addition to BYD, other car manufacturers have also implemented new price reductions this year, including Tesla, Geely, GAC Aion, Leapmotor, and Xpeng. According to Shi Ji, an analyst at China Merchants Bank International based in Hong Kong, BYD may offer more discount programs until the end of 2024. This will put pressure on the brand’s gross profit margin, but the loss can be partially offset by cutting costs from suppliers.
The gross profit margin of the car manufacturer, which has been supported by American billionaire Warren Buffett, has remained relatively high. According to Reuters calculations, BYD achieved a profit margin of 22% in the third quarter of last year, up from 18.7% in the second quarter.
BYD is also actively expanding its presence overseas. For example, the brand is leading the efforts to promote Chinese electric cars in Australia and has started building a production complex in Brazil.
This year, BYD is also expected to officially launch in the Vietnamese market. Specifically, BYD will open an authorized dealer in Hanoi in early May 2024. In the first phase, BYD will distribute 2 car models in Vietnam, but has not announced their identities. Only known is that the 2 car models will have sedan and SUV designs.
The BYD SUV model that will be sold in Vietnam is likely to be the Atto 3 electric car. Meanwhile, the sedan model could be the BYD Seal.
BYD cars sold in Vietnam will be imported fully from China. In the future, BYD cars in Vietnam may be imported from factories in the Southeast Asia region to enjoy 0% tax incentives. Currently, BYD is investing $504 million to build a car manufacturing plant in Thailand, which is expected to start operating from 2024. In addition, BYD also plans to build another factory in Indonesia.
[CAR REVIEW] The Newly Launched BMW iX3 in Vietnam: Compact, Practical, and Expensive
As the second electric car introduced by BMW, the iX3 caters well to everyday urban usage needs. However, it will still take time to reach customers.
[QUICK REVIEW] VinFast VF5: Extremely Affordable, Spacious, and Well-Equipped
Priced at just 458 million VND and accompanied by a range of benefits, the VinFast VF5 offers easy accessibility to consumers, rivaling the current A-class models on the market. However, its features and interior space exceed expectations.
[CAR REVIEW] User Reviews of VinFast VF 9: Stylish, Luxurious, Smooth Ride, and Perfect for Families
When it comes to the VinFast VF 9, users see it as a spacious, modern family car that offers a friendly user experience. However, for the driver, there are a few areas that could use some improvement, although the overall driving experience is still emotionally enriching.
[CAR REVIEW] Wuling Mini EV: Affordable, Compact, Convenient, but…
Even though it is only sold in its home country, China, the Wuling Mini EV has quickly surpassed the Tesla Model 3 to become the world’s best-selling electric car thanks to its affordable price and compact size. Expected to be available from late June 2023, will this model be successful in Vietnam?
Prepare for a new type of battery, safe even when electric vehicles are submerged in water.
Recently, researchers at the University of Central Florida’s Nano Science and Technology Center have made significant advancements in developing a new type of battery that can prevent spontaneous combustion in electric vehicles when exposed to water during floods.
