BYD, a leading Chinese new energy vehicle (NEV) maker, has introduced significant price discounts on its Dynasty and Ocean series models, with discounts ranging from 10% to 30%. The discounts, which are available until June 30, 2025, cover most of BYD’s affordable models priced under RMB 150,000 ($20,890). The price reductions are aimed at clearing out dealer inventories, which have grown rapidly in the first four months of 2025. According to Deutsche Bank, BYD’s dealer inventories have increased by 150,000 units, equivalent to half a month’s retail sales.
The discounts are available on BYD’s latest smart driving Edition models, including the Ocean range’s Seagull and the Dynasty series Qin Plus DM-i. The starting price of the Seagull has been reduced to RMB 55,800, down from RMB 69,800, while the Qin Plus DM-i is now priced from RMB 63,800, down from RMB 79,800. These discounts do not include government trade-in subsidies, which can further reduce the price by RMB 15,000.
Deutsche Bank analysts attribute the price discounts to BYD’s ambitious sales targets, which aim to sell 5.5 million vehicles in 2025, representing a 30% year-on-year increase. However, retail sales in the first four months were up only 15% year-on-year, due in part to disappointing new orders for BYD’s God’s Eye autonomous driving campaign.
The price discounts are likely to lead to further price competition in the mass-market price range, with other competitors potentially following suit. Already, Dongfeng Motor has cut the starting price of its eĎ€ 007 sedan by 9%, or RMB 12,000. BYD’s price discounts may also put pressure on other automakers to reduce their prices, leading to a potential price war in the Chinese market.
BYD’s sales target for 2025 includes over 800,000 units in overseas markets, according to local media. The company’s aggressive pricing strategy may help it achieve its sales targets, but it also poses risks for the company’s profit margins. As the Chinese NEV market continues to evolve, it will be interesting to see how BYD’s price discounts affect the overall market dynamics and whether other automakers will respond with similar price cuts.