New competitor to the Tesla Model Y – BYD soon market leader?

• BYD opens new price war
• EU investigates possible illegal Chinese subsidies
• BYD could soon replace Tesla as the market leader in electric car sales

BYD Song L in five different designs

After the Chinese car manufacturer BYD presented its brand new electric SUV, the Song L, for the first time at the Shanghai Auto Show in April 2023, the car has now been officially available in China since mid-December 2023, according to electrik.co. According to the news portal, the new car was very popular and received over 8,000 orders within three days of going on sale. At that point, almost 30,000 pre-orders had already been received. According to electrik.co, the BYD Song L comes in five trim levels, with prices ranging from 189,800 to 249,800 yuan ($26,700-$35,100). The car is based on the company’s own electronic 3.0 platform, which is also used for other models such as the Seal and Dolphin, and has all-wheel drive and a range between 550 and 662 kilometers. In terms of design, the BYD car is also impressive: according to electrik.co, the car is equipped with the company’s own “hunting dragon face”, an attractive front section with narrow LED headlights and a bumper with a trapezoidal air inlet, and is available in five colors.

Competition to the Tesla Model Y

The Song L’s starting price is significantly lower than the Tesla Model Y, which could make it an attractive alternative for buyers looking for affordable electric vehicles in China. China is the world’s largest sales market for cars; according to Statista, 23.56 million cars were sold in China in 2022. Compared to the Tesla Model Y, the BYD Song L is 90 mm longer, 29 mm wider and has a 40 mm longer wheelbase, according to Motorwatt.com. It is also 64 mm lower than its American counterpart.

EU launches anti-subsidy investigation

It is still unclear whether the new song L will come to Europe. This also depends on the political developments between the EU and China, which are becoming ever more acute in the area of ​​electromobility. The fact that Chinese electric cars can be offered so much cheaper than cars from European and US manufacturers may not only have something to do with Chinese cost efficiency. Since the prosperity of the EU and Germany in particular depends to a large extent on the automobile industry, a fair and transparent pricing policy from Chinese manufacturers has long been on the EU’s political agenda. In October 2023, EU Commission President Ursula von der Leyen announced in her State of the Union speech an official anti-subsidy investigation by the EU Commission to investigate whether Chinese manufacturers are benefiting from illegal subsidies from the Chinese state. If this is the case, imported Chinese electric vehicles could be subject to anti-subsidy tariffs, according to von der Leyen.

BYD may soon be the market leader

According to data from the “Global Passenger Electric Vehicle Market Share” from the analysis platform Counterpoint Research, BYD caught up with Tesla in global market share of electric vehicles sold in the third quarter of 2023 and is now on par with Tesla at 17 percent. In the first quarter of 2023, Tesla’s share was 22 percent and BYD’s was 14 percent, but in the third quarter of 2023 BYD was almost on par with Tesla in sales of electric vehicles, including plug-in hybrids. According to the analysis by Counterpoint Research, the Chinese group was able to record strong growth of 66 percent in 2023 compared to the same period last year and is expected to soon replace Tesla as market leader. Teslamag, for example, expects BYD to take over the position as the leading seller of pure electric cars in the second quarter of 2024.

Editorial team finanzen.net

Selected leveraged products on BYD

With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on BYD

The leverage must be between 2 and 20

Advertising