BYD, the Chinese electric vehicle (EV) giant, has initiated an aggressive round of price cuts to take on traditional automakers like Toyota and Volkswagen. The company has discounted almost every electric and hybrid car model it sells, declaring “electricity is cheaper than oil.” More than 100 existing model versions have seen price cuts compared to December, and a further 70 model trims have been relaunched with lower prices. Notably, BYD’s most affordable EV, the Seagull hatchback, has been discounted 5% to 69,800 yuan, making it less than $10,000. This undercuts the average price of an American EV by more than $50,000. The strategy aims to persuade drivers to switch from gasoline cars to electric and to attract customers in smaller cities and rural areas who previously couldn’t afford an EV. This move poses a threat to Toyota, Volkswagen, and Nissan, which have been slow to transition to EVs and have seen their China sales suffer as a result.
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