The price cuts are promotions by some dealers in some areas, and BYD is not considering cutting prices at the moment, a company source said.
(Image credit: CnEVPost)
BYD (OTCMKTS: BYDDY) said the price cuts on some models are not its official move, after the matter sparked much discussion over the weekend.
The company's operations are stable and the price cuts on vehicles in some areas are dealer promotions, Yicai said in a report today, citing a company source.
BYD is not currently considering price cuts, the person said, without providing more information.
On February 25, some local media reported that BYD's Dynasty lineup has been reduced in prices and that delivery wait times have been shortened to varying degrees compared to last year.
BYD's models include the Dynasty series, which includes the Han, Tang, Qin, Song and Yuan families, and the Ocean series, which includes the Seal, Dolphin and Frigate.
According to Jiemian, their reporters visited several BYD showrooms in Beijing and Shanghai on February 24, and salespeople at one showroom in Beijing said they received official notices of price reductions and that most models were offered discounts.
Discounts on older models ranged from RMB 10,000 yuan ($1,435) or more, with some popular models also offering several thousand RMB off, according to the report.
The models in BYD's Ocean series have not been reduced in price, and salespeople at BYD Ocean network showrooms in Beijing, Shanghai and Shenzhen interviewed said they had not received any recent notices of price cuts, the report said.
Most of BYD's hot-selling models currently have existing vehicles in stock, and the delivery cycle for consumers' customized models has been shortened from about six months last year to two to three months, according to the report.
On November 23 last year, BYD announced that starting January 1, 2023, it will increase the official guide prices of models in the Dynasty and Ocean series, as well as the Denza brand, by RMB 2,000 to 6,000 yuan.
It is worth noting that on January 6, Tesla once again significantly lowered the prices of the Model 3 and Model Y in China, for the second time in three months.
The pressure from Tesla's price cut and the decline in sales in the short term may be the main reason for BYD's price cut, Jiemian's report said.
After the Chinese New Year holiday, the number of visitors to BYD showrooms dropped and there was inventory pressure on older models, the report said, citing a salesperson at a BYD showroom in Shanghai.
BYD's new energy vehicle sales fell to 151,341 units in January, ending a 10-month streak of growth, as the Chinese New Year holiday took its toll on sales.
That's up 62.44 percent from 93,168 units a year ago, but down 35.65 percent from 235,197 units in December.
($1 = 6.9681 RMB)