Chinese electric vehicle maker BYD (BYDDF) hyped a new smart version of its off-road brand Fangchengbao on Friday, launching smart versions of its plug-in hybrid SUV Bao 5.
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The Bao 5 features BYD’s proprietary “God’s Eye” advanced driver-assistance system (ADAS). It’s priced from 239,800 yuan (about $33,000). A more expensive version features Huawei’s Qiankun ADAS.
Price War with Tesla
BYD last week introduced 21 models fitted with its God’s Eye system, opening another front in the long-running price war among EV makers in China as they try to corner the world’s largest market.
BYD cut the price of its Sealion 05 hybrid SUV in December by 11.5%, reigniting a price war in the world’s largest EV market by volume. The Chinese automaker also asked suppliers to cut prices by 10%. In February 2024, BYD reduced prices on almost all of its models by 5–20%.
Faced with flagging sales and stiffer competition, Tesla (TSLA) reduced the price of its Model Y and extended a zero-interest five-year loan deal. BYD sold 296,446 pure electric and plug-in hybrid vehicles in China in January, up 47% year-on-year, while TSLA sold 63,238 units of its EVs last month, down 11.5%.
Prices of EVs and other new energy cars fell 5.8% in January, while traditional fuel car prices fell 4.6%,
BYD Faces Backlash
But the introduction of free smart driving features across most of its vehicle Ocean and Dynasty series caused a stir among customers who missed out. BYD faced a surge in complaints from customers who felt they had overpaid for their vehicles as the new free features were not available at the time of their purchase.
God’s Eye boasts features typically found in high-end EVs such as remote parking via smartphones and autonomous overtaking on roads.
Is BYDDF a Good Stock to Buy?
Wall Street analysts have a Strong Buy consensus rating on BYDDF stock based on six Buys and one Hold assigned in the past three months. At $50.18, the average BYD Co. stock price target implies about 2% upside potential.
