Chinese BYD could have sparked an electric vehicle price war with new aggressive discounts

Chinese EV buyers could be about to save a lot on their purchases, as analysts warn BYD could have triggered another price war. The automaker announced a new raft of discounts on two product lines, and other manufacturers could be forced to react.

BYD is slashing the costs of its affordable EVs by 10 to 34 percent. The Ocean Seagull, for example, will be discounted to RMB 55,800 (about $7,750) from RMB 69,800, resulting in a 20 percent savings.

The Ocean Dolphin is getting a slightly higher discount of 22 percent, selling for RMB 77,800, down from RMB 99,800. Ocean Seal 07 DM-i buyers will enjoy the biggest price drop of 34 percent as the model will retail for RMB 102,800 instead of RMB 155,800.

BYD is also discounting the more expensive Dynasty line. The Xia, which normally costs RMB 249,800, will be marked down 13 percent to RMB 217,800, while the Han EV will be 14 percent less expensive with promotional pricing of RMB 154,800.

According to Deutsche Bank analyst Wang Bin, BYD is offering discounts to reduce its dealer inventory, which is building up to unsustainable levels. However, Bin notes that the competition could react with their own special offers, triggering a wave of price crashes across the Chinese market.

The rebates are available until the end of June 2025. They can be combined with trade-in subsidies, which allow drivers to scrape their old cars for new electric or more fuel-efficient models and receive up to RMB 20,000 from the government.