BYD slashes price on its best-selling SUV to $16K to compete with gas cars

After recently reducing prices of its refreshed Han and Tang models, Build Your Dreams (BYD) just launched a new version of its top-selling EV Yuan Plus – known as the Atto 3 in overseas markets – to $16,644 in China, making it one of the lowest priced EVs out there.

BYD has been targeting its home turf of China, the world’s largest vehicle market, for its latest price-slashing strategy to edge out both EV and ICE rivals with some of the lowest prices on EVs. The price war has already sparked major deals on some of its best-selling EVs, with the brand-new Yuan Plus crossover now available at 11.8% cheaper than the final sale price of its predecessor, reports Reuters.

Now the new Yuan Plus starts at 119,800 yuan ($16,644), BYD posted on Weibo. For comparison, the latest version of the Atto 3 starts in France at €46,690, or $50,650, which includes VAT. In Australia, the Atto 3 starts at $48,011 ($31,336), making that 85% more expensive than in China, Reuters reports.

For its newest update, the BYD Yuan Plus Honor Edition sees a few enhancements including a new black body color called Black Knight, with black chrome-plated rim. Dimensions are the same (4,455/1,875/1,615 mm) as the previous model with a wheelbase of 2,720 mm, so slightly smaller than a VW Tiguan. Its single electric motor is on the front axle for 150 kW and 310 Nm, and it’s powered by two LFP battery options from China’s FinDreams: 49.92 kWh for 430 km range and 60,48 kWH for 510 km range.

The vehicle is available in five trims, with the price of each trim reduced by 16,000 yuan ($2,200). That price puts the compact SUV at around the same price as ICE rivals including the Honda XR-V, the Buick Envision Plus, and the Volkswagen T-Cross.

Must Read: BYD to Increase Battery Prices by 20% Amid Raw Material Costs

Last year, BYD sold 412,202 Yuan Plus EVs, with about 100,000 of them exported, or 42% of its total car exports for that year, according to data from the China Association of Automobile Manufacturers.

Outside of China, there is no sign yet that we can expect to see any of these deals (and of course, BYD doesn’t sell cars in the US, not yet anyway). In China, BYD dominates a market jammed with more than 94 brands offering more than 300 EV models, according to Counterpoint Research.

However, Geely and BYD are making the biggest impact outside of China, too, with BYD pushing international growth with its plans to build an EV factory in Hungary and Mexico, and other automakers are looking to set up production in Europe as well. Chinese companies MG and Chery have also been scouting sites in Mexico and talking to officials for better access to the North American market, actions which have set off alarm bells in Washington