Chinese EV maker BYD’s high-end brand is tentatively scheduled to be officially launched in the first quarter of 2023, with the price of the first model exceeding one million yuan ($137,678), Cailian Press reported on November 8.
In February of last year, BYD first confirmed its plan to launch a high-end car brand when it adjusted the organizational structure of its automobile business. In May of this year, Li Yunfei, the general manager of BYD’s automotive branding and public relations division, provided updates on the high-end brand.
“According to several current product plans, the price range of the high-end brand is expected to be 800,000 yuan to 1.5 million yuan. BYD’s passenger car business consists of Dynasty Series, Ocean Series, Denza and this high-end brand. Except for Denza, a joint venture between BYD and Mercedes-Benz, other sub-brands are wholly owned by BYD,” Li said.
According to a report by Yicai in August, BYD will release the high-end brand in the fourth quarter of this year, and the price of new cars will exceed 1 million yuan. BYD staff said that brand, products, sales, service network and operation are being run by brand-new and independent teams. Entering the high-end car market is the company’s established strategy, targeting traditional luxury car brands, not Tesla.
According to Chinese business data platform Tianyancha, BYD established Yangwang Automobile Sales Co., Ltd. in Nanshan District, Shenzhen on November 7, with a business scope that includes new energy vehicle sales, vehicle electrical accessories sales, plug-in hybrid engine sales, charging pile sales, and more.
BYD’s performance this year in terms of sales has been very promising. An official announcement of stopping production of fuel vehicles in early April triggered much concern, but the soaring sales volume made such doubts gradually disappear. Since March, the firm’s sales volume has exceeded 100,000 units for four consecutive months, reaching 160,000 vehicles in July, 174,000 vehicles in August and over 200,000 vehicles in September.
Although BYD keeps hitting new highs in terms of sales, compared with Tesla, its profitability is still at a low level. Throughout 2021, BYD’s net profit rate is only 1.2%, while Tesla’s profit rate is as high as 17.6% – about 15 times that of BYD. However, this figure may change in 2022.
According to calculations by Sinolink Securities and Soochow Securities, BYD’s profit for each vehicle it sold reached 9,000 yuan to 10,000 yuan in the third quarter of 2022, much higher than the 828 yuan it made in the first half of 2021.