BYD, a leading new energy vehicle (NEV) maker, has recently announced significant price cuts on its Dynasty and Ocean series models, offering discounts ranging from 10 percent to 30 percent. This move has sparked speculation among analysts that it could potentially trigger a price war in the Chinese automotive market.
Customers purchasing BYD-branded vehicles before June 30th can take advantage of these discounts, which apply to a wide range of models priced below RMB 150,000 ($20,890), including the Xia MPV priced above RMB 200,000. The Ocean series’ Seagull model is now available at a limited-time starting price of RMB 55,800, down from the original price of RMB 69,800, while the Dynasty series Qin Plus DM-i is priced from RMB 63,800, reduced from RMB 79,800.
These discounts are specifically applicable to BYD’s latest smart driving Edition models, excluding older models. Additionally, buyers can further reduce the price by RMB 15,000 through government trade-in subsidies.
Deutsche Bank analysts attribute these price cuts to a significant increase in dealer inventories, which grew by approximately 150,000 units in the first four months of 2025, equivalent to half a month’s retail sales. This surge in inventory levels has prompted BYD to implement promotional offers to reduce excess stock levels, as dealers currently hold 3-4 months’ worth of inventory.
Despite BYD’s ambitious sales target of 5.5 million vehicles in 2025, representing a 30 percent year-on-year increase, the company has only achieved a 15 percent year-on-year growth in retail sales for the first four months of the year. Analysts point to underwhelming demand for BYD’s God’s Eye autonomous driving campaign as a contributing factor to the lower-than-expected sales figures.
Deutsche Bank anticipates that BYD’s price reductions may lead to intensified price competition in the mass-market segment, prompting other competitors to follow suit. For instance, Dongfeng Motor recently slashed the starting price of its eÏ€ 007 sedan by 9 percent to RMB 120,000.
Overall, BYD’s strategic pricing decisions are expected to not only benefit consumers with more affordable options but also stimulate heightened competition in the Chinese automotive market. As the industry continues to evolve, it will be interesting to see how other players respond to BYD’s aggressive pricing strategy.
