BYD takes the EV price war overseas with its cheapest car

After China warned that BYD’s recent EV price cuts are creating “war panic,” the company is now turning up the pressure overseas. BYD launched its most affordable EV in Europe, the Dolphin Surf, starting at about $25,000. The tiny EV is BYD’s top seller in China. Will it have the same impact in Europe?

BYD’s EV price war heads overseas with the Dolphin Surf

The Dolphin Surf is the European version of BYD’s best-selling EV in China, the Seagull. The Seagull is already sold for under $10,000 (69,800 yuan) in China, but after another round of price cuts last month, it’s now listed at just $7,800 (55,800 yuan).

Although it didn’t single out BYD, the China Automobile Manufacturers Association warned earlier this month (via Bloomberg) that recent price cuts are “triggering a new round of price war panic” in China.

After launching the Dolphin Surf in the UK and Europe, starting at just £18,650 (just over $25,000), BYD is now bringing its EV price war overseas.

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BYD outsold Tesla in the UK last month, registering 3,025 vehicles compared to Tesla with 2,016, and it’s quickly closing in on full-year sales.

In what’s being called a “watershed moment,” the Chinese EV giant also registered more vehicles than Tesla in Europe for the first time in April. And that’s before the Dolphin Surf arrived, which is now among the cheapest cars in the UK.

The UK’s cheapest EV is currently the Dacia Spring, starting at £14,995 ($20,000) with a WLTP range of 140 miles.

BYD’s base Dolphin Surf “Active” offers 203 miles WLTP range. A longer-range “Boost” variant is available with a range of up to 305 miles (507 km), starting at £21,950 ($30,000). Both include tech and features typically found on more premium vehicles, including a 10.1″ rotatable touchscreen and smart driving capabilities.

“Compact cars are the next frontier for electrification in Europe,” BYD’s executive vice president, Stella Li, said during the recent Dolphin Surf launch event in Rome.

Will BYD’s new Dolphin Surf spark a new EV price war overseas? Although China is warning it will have devastating impacts on domestic auto brands, it could fuel EV demand in Europe and the UK with more affordable options arriving.

Electrek’s Take

With a commanding lead in China, BYD is rapidly expanding its presence overseas to drive growth over the next few years.

According to S&P Global Mobility, BYD is expected to more than double its sales in Europe in 2025 to around 186,000 units. By 2030, BYD’s sales in Europe could reach upwards of 400,000.

And it’s not just Europe. BYD is already a leading EV brand in overseas markets, such as Brazil, Thailand, and Mexico, and is emerging as a threat in South Korea, Japan, and other key regions.

By building nearly all vehicle components in-house, including EV batteries and powertrains, BYD can offer electric vehicles at a significantly lower cost and still make a profit.

Its decision to stop making purely gas-powered vehicles in 2022 is already paying off as BYD emerges as a true global threat. One thing is for sure: BYD will be a brand to watch over the next few years as demand for lower-cost, efficient electric cars continues to grow.

Source: FT