BYD cuts prices for the first time this year and shortens delivery times

China’s biggest EV manufacturer BYD is finally giving in to the market pressure and bringing first price cuts this year. The price cuts are sweeping across two electric car ranges which include several EV models and BYD is cutting delivery times as well.

BYD offers two series of NEVs (New Energy Vehicles) - Dynasty and Ocean. Each one of those extensive families consist of various models, BYD’s EV portfolio is quite sizable and that’s how the company became the largest EV automaker in China - by offering a huge choice of electric cars.

Starting with the Dynasty family, we have Han, Tang, Qin, Song and Yuan vehicles which in turn are offered in different trims. The Seal, Dolphin and Frigate electric cars fall into the Ocean Dynasty among few other less known models.

At a first glance, it appears BYD is doing good old stock clearance. The 2021 Han EV for example, has been discounted by RMB 20,000 or nearly $3,000. The same goes for the 2021 Qin EV which received aRMB 15,000 price cut or around $2,100. The newer models have their prices cut by RMB 6,000 to RMB 8,000 ($850 to $1,100) according to local reports.

As always, there is a catch - at this moment the largest discounts are only offered in Beijing and will end sometime in March. Shenzhen and Shanghai showrooms are offering discounts only up to RMB 10,000 on older stock vehicles while the newer ones get smaller discounts accordingly.

For the moment it appears the Ocean series is excluded from any price reductions, according to sales staff from Ocean showrooms, they are yet to receive any notice about reducing sale prices or offering discounts for older stock.

As for the delivery waiting times, there is some good news as well. BYD is offering the best-selling models in most requested configurations from stock meaning almost immediate delivery for those who are willing to buy a pre-configured car. For individual and highly customized orders, the waiting time has gone down from six to just over two months.

Is the pressure on BYD so high that it would forgo profit margins in exchange for keeping the market share? It seems so, BYD’s sales in January plummeted by over 35 percent compared to December ending its 10-month uninterrupted growth. Despite that, electric cars with BYD logo accounted for nearly 40 percent of all EVs sold in January in China.

With the EV subsidies vastly reduced in China from this year, the electric car market is expected to slow down its relentless growth. Some analysts expect as much as 30 percent pullback which comes at a time when all automakers are growing their manufacturing capacity. That means - if the analysts are right - more electric cars than potential buyers. The price cuts we see right now, may be just the start of a long and fierce price competition.

Via