BYD US$11,450 Seagull EV set to reshape China’s first-car market

SHANGHAI: A new electric hatchback starting from just 78,800 yuan (US$11,450/RM51,000) from BYD Co. is set to intensify competition in China’s already crowded entry-level car market.

Unveiled at the Shanghai auto show last week, the Seagull drew big crowds with its neon yellow exterior and budget price tag.

The 55kW motor provides around 300km of charge at a top speed of 128kph, while the 75kW motor bumps the range up to 400km. Features include a 10.1 inch rotating touchscreen, four air bags and bluetooth car keys.

The Seagull has several competitors in the compact hatchback market, including the Bingo from General Motors Co.’s joint venture with Shanghai Automotive Industry Corp. and Wuling Motors Holdings Ltd., which starts from 59,800 yuan (RM39,000), and EV upstart Leapmotor’s T03, which goes for 65,800 yuan (RM43,000).

The launch of the sharply-priced Seagull comes as a price war embroils China’s car market, with some automakers discounting slow-moving models by up to 40%. BYD already dominates China’s EV market, accounting for six of the top 10 selling models in 2022.

“BYD is adding pressure for other carmakers in the segment,” said Tu Le, managing director of automotive consultancy Sino Auto Insights. The Bingo is a strong competitor and has a lower price point, but the Seagull offers good value, he added.

One drawback is that the Seagull didn’t launch with sodium-ion batteries — which are cheaper and safe than lithium ion cells — as anticipated.

However, Chinese online media outlet 36kr reported the car will eventually be the first to carry BYD’s sodium-ion battery, which is expected to go into mass production in the second half of this year.

That could make it a “wild card” for the auto industry, said Le.

So far, BYD hasn’t announced plans to export the Seagull. An earlier, larger model known as the Dolphin, has been launched in markets from Southeast Asia to Europe and South America.

And BYD chairman Wang Chuanfu has ruled out entering the US passenger car market for now.

For the Seagull to sell in Europe, it would likely require modifications to pass the European New Car Assessment program.

The made-in-China Dacia Spring EV from Renault SA, dubbed Europe’s most affordable EV, went through a process where it was re-engineered for Europe with a reinforced chassis, six airbags and other modifications, according to Jochen Siebert, the managing director of consultancy JSC Automotive.

In Europe, the Seagull would compete with the Dacia Spring and would have to hit a price point of around €22,000 (RM109,000), which may not be possible after going through the approval process, said Siebert.

For instance, the Dolphin is expected to start from €30,000 (RM148,000) in Europe, about 80% more expensive than its price in China.

Bridget McCarthy, a market research analyst at hedge fund Snow Bull Capital Inc., said she expects the Seagull to sell extremely well in China and in other markets if it’s exported.

“No other company can offer a car with that level of technology at that price point,” she said.