Electric Cars Set to Replace Petrol Vehicles as BYD Initiates Discount War

BYD, a leading Chinese electric vehicle (EV) maker, is making waves in the automotive industry with its bold predictions and aggressive pricing strategies. According to Lu Tian, the head of sales at BYD, electric cars are poised to completely replace petrol vehicles in the future. To attract Chinese customers, BYD is committed to offering top-quality products at competitive prices.

In February, BYD kicked off a discount war by slashing prices on 50 models across different brands by an average of 10 percent. This move was seen as an attempt to compete with traditional petrol vehicles, with prices dropping between 5 and 20 percent. However, financial giant Goldman Sachs warns that if BYD further lowers prices by 10,300 yuan per vehicle, the profitability of the automotive industry could suffer.

Currently, only a few mainland EV makers are profitable, with many struggling to break even. Despite this, Chinese carmakers are expected to continue offering discounts in order to retain their market share. Experts believe that the discount war may soon come to a close, leading to more stable prices in the near future.

Brian Gu, the president of Xpeng, sees the competition between EV makers as a positive development for the industry. He believes that the discount war has fueled the expansion of the EV sector in China and accelerated its market penetration. As the automotive landscape continues to evolve, it seems that electric vehicles are on track to dominate the market, with BYD leading the charge.