According to one of the spokespersons for BYD, Tesla’s biggest competitor, the price war will intensify next year in the electric car segment. The Chinese firm could then end up overtaking Tesla, which currently remains the world number 1.
If Tesla encountered significant difficulties last year, that is now history, because everything seems to be going well for the American firm. However, experts announced that the latter was going to be seriously disrupted by Chinese manufacturers. And they weren’t wrong.
A new price war
If Elon Musk’s company remains the number 1 electric company in the world, having even broken its record last year, it must however be wary. Indeed, it is now closely followed by its rival BYD, which already sells more cars if we also take hybrids into account. But that’s not all, because the Chinese firm would be on the verge of overtaking Tesla. And for good reason, the two have sold almost as many electric vehicles.
And BYD obviously doesn’t intend to stop there, as you can imagine. This is what one of its spokespersons, Zhang Zhuo, suggests. The latter is one of the brand’s executives, currently in charge of the Ocean division including the Seal as well as the Dolphin and the Seagull. And the latter warns its rivals by announcing a new price war, as relayed by the site Car News China.
The latter spoke out and announced that in “ 2023, there was a price war between thermal and electric. In 2024, there will be a price war between electric cars. The situation should be more intense than last year and perhaps even enter the decisive battle stage“. This at least has the merit of being very clear. Would this also be a warning to Tesla?
Without a doubt. The manufacturer seems to be responding to the American firm, which launched the first price war by lowering the price of its Model 3 and Model Y by 13,000 euros at the start of the year. Later, other price drops were organized by the manufacturer, in order to increase its sales. Before he decided to make them climb again in China in recent weeks.
Chinese cars are generally less expensive than those from other countries, due to cheaper labor. This is also partly why Tesla has a factory in Shanghai, which produces the Model 3 and Model Y, thus depriving them of bonuses in France next year. Except for the Tesla Model Y produced in Berlin.
But BYD wants to do even harder, by continuing to push prices down to grab additional market share.
Indeed, some specialists claim that BYD cars cost $10,500 less to produce than a Volkswagen ID.3 in Germany, for example. The Seal would be on his side 15% more profitable than a Tesla Model 3. But while the firm will build its cars in Europe, it could still continue to display lower prices than its American competitor.
In addition, production here would allow the brand to retain the ecological bonus, unlike Elon Musk’s sedan. But that’s not all, because the Chinese manufacturer is already planning a major offensive, having just lifted the veil on its Sea Lion 07, an SUV rival to the Model Y. The latter, cousin of the Denza N7 should display a price around 200,000 yuan, i.e. the equivalent of 25,734 euros. The latter will, however, be revised upwards if it arrives in Europe.
Later, the latter’s range will be expanded with two new models. These will be the Sea Lion 05 and Sea Lion 06, but for the moment no details have yet been revealed about them. However, we know that they should also take the form of electric SUVs.