Story by Luc Olinga • Yesterday
BYD, which has legendary investor Warren Buffett as a shareholder, has just unveiled the Seagull, a $11,000 electric vehicle making it by far the cheapest EV currently on the market.
The pressure is mounting on Tesla.
The world leader in electric vehicles is facing an unprecedented offensive from Chinese groups and more particularly from BYD, the world's leading manufacturer of clean vehicles -- battery powered vehicles, or BEV, and plug-in hybrid.
In January, when Tesla (TSLA) - Get Free Report CEO Elon Musk was asked during Tesla's fourth quarter earnings' call on Jan. 25, who he thought would be Tesla's main rival within five years, he had indicated that it would probably be a Chinese group.
"I'm curious how you see the current competitive landscape changing over the next few years, and who you see as your chief competitors in five years from now," an analyst asked him.
"I don't think it's any of the companies that we're aware of. I'm just guessing that someone might pick it up, eventually," Musk responded. "We have a lot of respect for car companies in China. They are the most competitive in the world. That is our experience and the Chinese market is the most competitive. They work the hardest, and they work the smartest. We have a lot of respect for the Chinese car companies that we're competing against."
As a result, "I would guess there would probably be some company out of China [which] is most likely to be second to Tesla," he concluded without giving a name.
The Seagull
Nearly three months after that statement, Musk can now see Tesla's biggest rival in the rear view mirror. BYD (BYDDY) , which is known for its portfolio of animal-named models -- Seal and Dolphin -- Chinese imperial dynasties -- Han, Tang, Yuan, Song -- and warships -- Frigate, Destroyer -- comes to launch Seagull at the Shanghai Motor Show
The Seagull is a full electric city car with compact dimensions and a very attractive price. This vehicle is 3.78 meters long, 1.71 meters wide and 1.54 meters high. Its design is different from other BYD models. The lines are more conventional, with an entirely vertical rear face.
Thanks to its wheelbase of 2.50 meters, the BYD Seagull should offer a nice space on board. Its five doors provide easy access for four occupants.
The Seagull is based on the BYD e-Platform 3.0 and houses a 55 or 75 kW (75 or 102 hp) electric motor. It will be powered by a lithium iron phosphate BYD Blade battery with capacities of 30 and 38 kWh, BYD said. This type of battery, more economical and which allows very fast recharging, has been tested for several months by the manufacturer. It could for example ramp up from 30% to 80% charge within 30 minutes, the company asserted.
The World's Cheapest EV
The BYD Seagull comes with two range versions: 305 to 405 kilometers (190 to 252 miles) on a single charge.
What is most striking about the Seagull is neither its features nor its design but its price. This vehicle will be priced from 78,000 yuan ($11,326). This is more than half less than the base price of the Nissan Leaf which is $28,040 or the Chevy Bolt which is $26,500. The Seagull will therefore be the cheapest electric vehicle in the world.
Tesla's Model 3 sedan, which is currently the least expensive model from the Austin, Texas-based automaker, costs $39,990 at base price. Tesla has launched a price war in China and the United States for several months to make its cars more affordable. The last price reduction took place on April 18 in the United States.
The Seagull is scheduled for the Chinese market this year. BYD has not yet said whether the group, which already exports cars to Europe, will sell this city car in other markets.
The Shenzhen group (southern China), which also a battery manufacturer and a Tesla supplier, has set itself the goal of exporting 300,000 vehicles worldwide this year, compared to 50,000 in 2022, according to public television CCTV. BYD markets passenger cars in around fifty territories, including Europe, one of its priorities as for many other Chinese groups.
BYD's latest announcement reflects Chinese automakers' offensive that is transforming the landscape of the global auto industry. This rise in power of Chinese manufacturers is part of a general policy of the local authorities. China, which is the world's main emitter of greenhouse gases, is seeking to reduce its polluting emissions and its dependence on foreign oil. The country aims to sell around 20% of electric or hybrid vehicles in 2025.
As a result, the government is giving itself the means for its success by providing tax credits, which is in addition to subsidies granted by the local authorities.
Sales of electric and hybrid cars have practically doubled there in 2022 to represent more than a quarter of vehicles sold, i.e. an unprecedented level, according to the Chinese Federation of Individual Car Manufacturers.
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