BYD Ignites Competition in China’s Auto Market with Discounts up to 30% on “Ocean” and “Dynasty” Models

In a bold move reflecting the intensifying competition in China’s electric and hybrid vehicle market, leading automaker BYD announced widespread price discounts across a broad range of its cars from the “Ocean” and “Dynasty” series. These discounts range between 10% and 30% on many models, prompting analysts to warn of a potential new “price war” in the Chinese market, with expectations that competing companies may follow suit to keep pace with this sudden shift.

Discount Details: Attractive New Prices Until End of June 2025

According to BYD’s official announcements, customers purchasing any of the company’s vehicles by June 30, 2025, can benefit from substantial discounts. These cuts cover most vehicles priced under 150,000 yuan (approximately 76,500 AED / 20,840 USD), as well as some higher-priced models like the Xia MPV, which costs over 200,000 yuan (approximately 102,000 AED / 27,800 USD).

Notable examples of the discounts include:

• Seagull from the Ocean series: Price reduced from 69,800 yuan (approx. 35,598 AED / 9,700 USD) to 55,800 yuan (approx. 28,458 AED / 7,755 USD), a discount of about 20%.
  
  

• Qin Plus DM-i from the Dynasty series: Price cut from 79,800 yuan (approx. 40,698 AED / 11,090 USD) to 63,800 yuan (approx. 32,538 AED / 8,865 USD), a discount of about 20%.
  
  

• Seal 07 DM-i: Price slashed by 34% to just 102,800 yuan (approx. 52,428 AED / 14,280 USD).
  
  

• Song Plus DM-i: Price dropped from 135,800 yuan (approx. 69,258 AED / 18,870 USD) to 99,800 yuan (approx. 50,898 AED / 13,860 USD), a discount of 26.5%.
  
  

The discount list includes various models such as Dolphin, Sealion 05 DM-i, Han EV, Tang DM-i, Yuan Plus, among others, with discount rates varying by model.

BYD’s Motives: Clearing Inventory and Ambitious Sales Targets

According to banking reports and economic analyses, these discounts mainly stem from a significant increase in BYD’s dealer inventory during the first months of 2025, which rose by about 150,000 units—equivalent to half of the company’s monthly retail sales. Estimates indicate that current dealer inventory covers 3 to 4 months of sales, the maximum the market can absorb without negatively impacting prices.

BYD aims through these offers to accelerate inventory turnover and support its ambitious goal of selling 5.5 million vehicles in 2025, a 30% increase over the previous year. However, the company has only achieved 15% retail sales growth in the first four months of the year, prompting this exceptional step.

Market and Competitor Impact

Deutsche Bank analysts believe these discounts could trigger a new wave of price competition, especially in the economy car segment, potentially pushing other companies like Dongfeng Motor to reduce their prices as well. Indeed, Dongfeng recently cut the price of its eπ 007 model by 9% in a single move.

These discounts are expected to boost demand for BYD vehicles, especially the smart models equipped with the latest autonomous driving technologies, as the current offers focus on newer smart versions rather than older models.

Do Discounts Include Government Subsidies?

Official data indicates that some discounts include government subsidies for vehicle replacement programs, particularly in the Ocean series, while the Dynasty series does not include such subsidies. This gives customers more flexibility in benefiting from offers depending on the chosen model.

Future Outlook: Will the Price War Continue?

Observers expect this move to reshape the pricing landscape in China’s auto market, especially as competition intensifies between local and global automakers. These discounts may also encourage consumers to accelerate their purchase decisions before the end of the promotional period, positively impacting BYD’s short-term sales.

However, questions remain about the sustainability of this strategy, especially if other companies enter a price-cutting race, which could affect profit margins across the sector.

BYD’s broad discounts reflect the dynamic nature of China’s electric vehicle market and underscore the importance of pricing flexibility in managing inventory challenges and achieving growth. As competition continues, Chinese consumers stand to benefit the most from these shifts, while the coming months will reveal further developments in the smart car market.