BYD introduces hybrid with driving range of 1,300 miles

Wed May 29 2024
Lucy Harlow (4114 articles)
BYD introduces hybrid with driving range of 1,300 miles

BYD, a Chinese automaker, is introducing vehicles that can travel over 1,300 miles without the need for refilling or recharging. This is their most recent attempt to distinguish themselves from competitors in the largest automobile market globally.

On Tuesday, the largest manufacturer of electric vehicles unveiled two plug-in hybrid sedans equipped with enhanced power systems, enabling them to go over 2,100 kilometers (1,306 miles) on a single tank of fuel and a fully charged battery.

The Qin L DM-i and the Seal 06 DM-i models are priced between 99,800 yuan ($13,775.21) and CNY139,800, which are quite affordable for sedans in China.

BYD has introduced its fifth generation of powertrains, following the debut of its initial plug-in hybrid vehicle in 2008. The updated iterations have reduced fuel consumption to 2.9 liters per 100 kilometers, a decrease from the prior version’s 3.8 liters per 100 kilometers three years ago.

On Wednesday, the Hong Kong-listed shares of BYD experienced a 5.3% increase, making them the highest performing stock among the constituents of the Hang Seng Index. Shares traded on the Shenzhen stock exchange ended the day with an increase of 8.35%, marking its biggest single-day gain since September 2021.

BYD, which is supported by Warren Buffett, has experienced significant growth in recent months. It has surpassed Tesla as the leading global seller of electric vehicles, introduced a sports car resembling a Ferrari, launched its first pickups, and managed to increase its revenue and profit margins. This success has been achieved despite intense price competition and strong rivals in China, which is currently the most saturated market for electric vehicles.

The driving ranges of the new sedans far surpass those of BYD’s hybrid competitors. The newest L6 model from Li Auto, a leading hybrid specialist, has an impressive driving range of up to 1,390 kilometers. Similarly, the latest Aito M9 model from Seres, which is sponsored by Huawei, is stated to have a driving range of up to 1,402 kilometers. The maximum range of most prominent international hybrid car manufacturers generally reaches approximately 1,100 kilometers.

Experts have stated that the increased driving range, reduced fuel consumption, and affordable prices of the new BYD models will strengthen the company’s dominant position in the industry. This comes at a time when competitors are preparing to introduce new models and further reduce costs in a prolonged price competition.

According to BOCOM International auto expert Angus Chan, these tariffs may further increase the challenges faced by foreign automakers, who are already experiencing a decline in their market presence in China. “Japanese automakers would have the greatest vulnerability,” he stated, as the new car models offer an alternative to names such as Nissan and Toyota, which have traditionally been known for their affordability and economical operation.”

According to Nomura analyst Joel Ying, the primary rivals for the new models will be conventional cars with internal combustion engines that are aimed at the same type of customers and fall within a similar price range. Examples of such competitors include Nissan’s Sylphy as well as Toyota’s Levin and Corolla models. According to the speaker, ICE competitors are unable to guarantee a driving range of 2,000 kilometers.

Tags BYD, China, Tesla, U.S.
Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Equities, Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe