BYD EVs priced 3x times higher in foreign markets than in China

BYD Seal prices are anywhere between 30% to 136% higher in foreign markets compared to its retail price in China.

According to a media report, Chinese automakers are significantly raising the prices of their exported vehicles to maximise profits.

The strategy, reportedly led by BYD, sees the automaker price some of its export EV models nearly three times higher than what the model sells for domestically. However, even with this strategy, some Chinese carmakers are managing to undercut their competitors in the West.

As per the latest research, Chinese automakers price their models just below that of European brands, while offering more standard equipment & features. Also, even after factoring in all additional exportation costs, each EV from a Chinese automaker still manages to rake in thousands of dollars of additional profits.

Reports suggest that this is possible because Chinese manufacturers have rationalised costs at every stage of the manufacturing process. Battery costs, which are 18% cheaper in China, combined with the availability of government subsidies and cheaper labour and power costs, help bring down the price of a Chinese EV.

Stating a few examples, the report mentions that in some export markets,*the BYD Atto 3 is priced between 81% - 174% higher than its price in China. Similarly, a BYD Dolphin, priced at $37,439 in Germany, costs just $15,524 in China. BYD Seal prices are anywhere between 30% to 136% higher in foreign markets compared to its retail price in China.

This massive headroom also allows Chinese EV makers to offer price cuts & discounts to engage in a price war with their rivals.

Source: Reuters