BYD fires the first shot: Electric vehicles go head-to-head with gasoline cars in a decisive battle.

After the Spring Festival, BYD fired the first shot in the price war for automotive markets in the Year of the Dragon, driving down prices of new-energy vehicles into the 70,000-yuan range and boldly proclaiming the slogan "Electricity is cheaper than gasoline." Following closely behind, SAIC-GM-Wuling, Changan Avatr, and Geely Automobile quickly joined the fray.

From the 2023 "Oil and Electric at the Same Price" to the 2024 New Year's "Electric Cheaper Than Gasoline," the shift in marketing slogans perfectly mirrors the rapid transformation of China's new-energy vehicle market. Clearly, this time BYD has directly positioned electric cars against gasoline-powered vehicles, signaling that competition between the two is entering a critical phase. On February 19, BYD announced the launch of two new models—the Qin PLUS Honor Edition and the Destroyer 05 Honor Edition—both starting at an eye-catching price of just 79,800 yuan, officially ushering in an era where electric vehicles are priced lower than their gasoline counterparts at the same segment level, thereby aggressively targeting the A-class sedan market. Li Yunfei, General Manager of BYD Group’s Brand and Public Relations Department, emphasized that thanks to BYD’s economies of scale and its robust advantages across the entire automotive industry chain, the company can now offer plug-in hybrid models at prices even lower than those of comparable gasoline-powered vehicles. In 2023, BYD introduced the Qin PLUS DM-i Champion Edition, marking the first time the brand brought the price below 100,000 yuan while simultaneously promoting the slogan "Oil and Electric at the Same Price." Leveraging its competitive pricing and product strengths, the Qin PLUS family achieved cumulative sales exceeding 480,000 units last year—surpassing popular joint-venture gasoline models like the Sylphy and Lavida by approximately 100,000 vehicles—and clinching the annual sales title for A-class sedans for the first time in history. This latest price cut further positions the revamped Qin PLUS as a more attractive option compared to rivals such as the Sylphy and Sagitar in the same segment, while also giving it a clear edge over competing hybrid models like the Wuling Starlight, Roewe D7, Geely Xingyun A8, and Changan Avatr A05. In fact, even some entry-level A0-class compact cars now seem less appealing in comparison.

"An old Chinese saying goes, 'One stone stirs up a thousand ripples.' After BYD unveiled its bold price strategy, several automakers quickly followed suit. As a direct competitor, SAIC-GM-Wuling took the lead by announcing on social media: "One word—join us!" According to official information, the upgraded 150km-range plug-in hybrid version of the Wuling Starlight now carries a price tag of just 99,800 yuan, a reduction of 6,000 yuan from the previous 105,800 yuan. This price adjustment puts the Wuling Starlight in direct competition with BYD’s Destroyer 05 120km model. However, unlike BYD, Wuling is only lowering prices for the higher-trim versions of its plug-in hybrid models, targeting buyers who might otherwise consider BYD’s Qin 55km high-spec variant or the lower-trim 120km version of the Destroyer 05. Meanwhile, the entry-level 70km-standard version of the Starlight remains unchanged at 88,800 yuan. In response, Wuling proudly declared, "The price of our ultra-long-range pure-electric-extended-range plug-in hybrid models has officially entered the 90,000-yuan bracket."" 
Looking at SAIC-GM-Wuling's price-cutting strategy, it’s clearly the result of careful consideration. Currently, among hybrid vehicles, models with longer ranges and lower trims are particularly popular. Take BYD Qin PLUS DM-i as an example: in the second half of 2023, the 120KM-long-range, entry-level version accounted for over 40% of Qin PLUS DM-i sales. Wuling Starlight has also lowered prices on its long-range model, highlighting its competitive edge while effectively managing costs. Following closely behind, Changan Automobile has joined the price-cutting trend, offering new preferential policies for the Changan Qiyuan A05 and Changan Yidong PLUS Changxiang versions—and even unveiled a striking poster proclaiming "Electricity is Cheaper than Gasoline." Notably, the starting price of the Changan Qiyuan A05 has dropped to just 78,900 yuan, with an impressive overall discount of up to 11,000 yuan on the entry-level model. This puts it squarely in direct competition with BYD Qin PLUS on entry-level pricing, while the higher-trim variants boast discounts as high as 23,000 yuan. Meanwhile, Geely Automobile has adopted a similar approach, launching the Geely Emgrand L HiP (Configuration | Inquire), with the entry-level version seeing an immediate price reduction of 20,000 yuan, now available from as low as 89,800 yuan.

Earlier when the Geely Emgrand L HiP was launched, many people compared it directly to BYD's Qin PLUS DM-i. However, after its release, the car’s sales remained modest—and it was even eventually replaced by the Geely Galaxy L6. According to market performance, the Emgrand L HiP has sold 3,729 units over the past year. This time around, the starting price of the Geely Emgrand L HiP Dragon Edition has been reduced to 89,800 yuan, which is 10,000 yuan higher than the BYD Qin PLUS DM-i Honor Edition. Yet, its entry-level model boasts an impressive pure-electric range of 100 kilometers and is equipped with a hybrid system featuring a 1.5T engine paired with a 3-speed DHT unit, delivering even lower fuel consumption when operating in range-extending mode. 
Not only are traditional automakers swiftly joining the price-cutting trend, but on February 19, NETA Auto officially announced direct discounts of up to 22,000 yuan across its entire lineup. Specifically, the NETA X sees a flat 22,000-yuan discount across the board, with the addition of the new 400 Air version starting at just 99,800 yuan—bringing the entry price below 100,000 yuan for the first time. Meanwhile, the NETA S receives a uniform 5,000-yuan discount, now priced from 154,800 yuan. In 2023, NETA Auto delivered a total of 127,500 vehicles, marking a 16.20% decline compared to the previous year. Notably, NETA was the only major new EV brand among the mainstream players to experience a sales downturn that year. At the end of the same year, the company underwent a significant restructuring, with the CEO simultaneously taking on the role of president of the marketing division to personally oversee the turnaround efforts. By January 2024, under the leadership of Zhang Yong, NETA Auto finally began to dispel the lingering challenges it had faced. That month, the company achieved deliveries exceeding 10,000 units—representing substantial year-on-year and month-on-month growth. In response to BYD’s latest round of price wars, NETA Auto has also chosen to follow suit, aiming once again to boost its sales volume. 
Notably, this year’s price war isn’t limited to new-energy brands—fuel-car manufacturers have also announced they’ll follow suit with price cuts. Beijing Hyundai has unveiled a reduction of up to 24,000 yuan on its A-class sedan, the Elantra, bringing the starting price down to 75,800 yuan and pushing it into the 100,000-yuan price range. The company even introduced the slogan, “Gas is stronger than electric.” Meanwhile, Buick, under SAIC-GM, has announced limited-time discounts or trade-in incentives for select models. Specifically, the Buick Regal, Verano Pro, and Enclave Plus are eligible for reductions ranging from 35,000 to 65,000 yuan, driving their prices down to the 100,000- to 150,000-yuan bracket—and all with the aim of reinforcing the position of fuel-powered vehicles. 
For a long time, joint-venture brands have managed to keep the price of fuel vehicles in the 100,000–120,000 yuan range thanks to their mature production and supply-chain management systems. However, with new energy brands now slashing prices, the once-premium pricing advantage of traditional fuel cars is no longer sustainable. This time, BYD’s unveiling of its latest models has sent alarm bells ringing for many conventional fuel-car manufacturers, who are beginning to realize that electric vehicles have become an irreversible trend—and that competition in the years ahead will only intensify. Notably, the recent wave of price reductions at the start of the year has primarily targeted hybrid models priced around 100,000 yuan, a segment that was previously dominated by joint-venture fuel vehicles. It seems clear that domestic automakers are poised to seize market share by leveraging their strengths in new-energy hybrid technology. Earlier industry insiders also predicted that plug-in hybrid vehicles—including range-extended models—will experience a sales boom in 2024. Indeed, in January alone, the market share of plug-in hybrid and range-extended models saw a remarkable surge. According to data from the China Passenger Car Association (CPCA), while pure-electric vehicles accounted for 59% of wholesale sales in January, their share had soared to 70% during the same period last year. 
Notably, the share of plug-in hybrid vehicles is on the rise, reaching 28%, while range-extended models account for 13%. In contrast, during the same period last year, these figures were only 24% and 6%, respectively. Cui Dongshu, Secretary-General of the China Passenger Car Association, has noted that the growth in plug-in hybrid sales is primarily driven by models in the lower price segment. As domestic automakers have refined their plug-in hybrid technologies, these vehicles have already captured a significant portion of the mid-to-low-priced market. According to data from the China Passenger Car Association in 2023, plug-in hybrids held a mere 0.6% share in the 50,000–100,000 yuan passenger car segment. However, by January 2024, this share had surged to 2.4% within that specific market segment.

Judging from current market trends, plug-in hybrid vehicles are not only taking share from the pure electric vehicle market, but also from the traditional fuel vehicle market. BYD's Qin PLUS DM-i Champion Edition, launched in 2023, will be priced at 99,800 yuan, roughly on par with the official suggested retail price of the Sylphy Classic Edition. For a long time, the 100,000 yuan sedan market was dominated by joint venture fuel vehicles. New energy compact sedans in this segment were generally priced higher than fuel vehicles, while offering less-than-stellar value and product quality. Consequently, this segment was dominated by joint venture brands.

According to statistics from the China Passenger Car Association, the core passenger car market in China is currently concentrated in the 50,000-150,000 yuan price range, with traditional fuel vehicles accounting for the largest share in this key market segment. The arrival of hybrid models such as the BYD Qin PLUS DM-i, Emgrand L HiP, Galaxy L6, and Roewe D7 DMH are impacting this segment. Under the impact of new energy vehicles like the BYD Qin PLUS, the gasoline-powered vehicle market is also facing significant pressure, especially for compact sedans such as the Sylphy and Lavida. Consequently, price cuts have become a key factor in maintaining their competitive advantage. Both have already entered the 80,000 yuan segment, along with the Corolla and Bora.

According to third-party platforms, the Nissan Sylphy's starting price is as low as 75,600 yuan, with discounts exceeding 30,000 yuan. Dealer discounts for the Toyota Corolla are also approaching 30,000 yuan. The Volkswagen Bora and Santana gasoline-powered vehicles are priced as low as 60,000 yuan. However, sales of compact gasoline-powered vehicles have not performed well despite the price cuts. According to the China Passenger Car Association's sedan sales rankings for January, the Volkswagen Lavida took the top spot, with monthly sales reaching 32,419 units, a 16.4% decrease from the previous month. The Nissan Sylphy's monthly sales also exceeded 30,000 units, reaching 30,384 units, a 37.2% decrease from the previous month. Meanwhile, the Toyota Corolla and Levin have fallen out of the top 20. By contrast, BYD's Qin PLUS family will maintain monthly sales of over 40,000 units in 2023, firmly securing the top spot in the domestic A-segment sedan market. The Qin PLUS Honor Edition, now available, is priced on par with the Lavida New and Sylphy Classic models, offering advantages such as lower operating costs and improved range. Given similar pricing, plug-in hybrid models offer a more attractive proposition. The Honor Edition will continue to help the Qin PLUS carve out market share from gasoline-powered vehicles like the Lavida, Sylphy, and Sagitar.

On social media, Li Yunfei, General Manager of BYD Group’s Brand and Public Relations Department, stated that BYD’s plug-in hybrid vehicles can be priced even lower than their gasoline counterparts in the same segment, a move that will decisively kick off a full-blown battle against traditional fuel-powered cars. "After this," he added, "who will still choose to buy a gasoline car?" Of course, gasoline vehicles aren’t about to sit idly by—they’re fighting back. However, industry analysts believe that although models like the Sylphy and Lavida still have some room for price reductions, those cuts have already hit bottom. As a result, the market share once dominated by mainstream 100,000-yuan-level gasoline cars will continue to be rapidly eroded by electric vehicles. Commenting on this year’s automotive market trends, Cui Dongshu, Secretary-General of the China Passenger Car Association, noted: "From the perspective of gasoline cars, the declining costs of new energy vehicles and the emergence of ‘equal pricing between gasoline and electric’ models are putting immense pressure on traditional automakers. Meanwhile, gasoline car manufacturers have been relatively slow in updating and upgrading their product lines, with limited advancements in vehicle intelligence. Consequently, they increasingly rely on attractive discounts to retain customers." 
Additionally, Cui Dongshu pointed out that as the penetration rate of new energy vehicles rapidly increases, the market size for traditional fuel-powered cars is gradually shrinking. This creates a growing tension between the industry's massive conventional production capacity and the steadily declining demand in the fuel-car market, leading to increasingly fierce price wars. In recent years, with the rapid advancement of new-energy vehicles, there has been mounting talk within the industry about "killing off" fuel cars—so much so that several automakers have already publicly announced timelines for phasing out the sale of gasoline-powered vehicles. However, at this point, it’s still too early to write off the future of fuel cars altogether.

Due to the long history of development and strong market reputation built by gasoline-powered vehicles, these highly cost-effective, Chinese-made pure-fuel cars remain consumers' top choice, especially in most third-, fourth-, and fifth-tier cities—they’re reliable, durable, and affordable. Meanwhile, new-energy vehicles still face significant challenges in terms of technology and cost, while gasoline cars continue to hold certain advantages in performance and maintenance. From a corporate perspective, gasoline vehicles currently remain the sales mainstay for traditional automakers. Most mainstream Chinese brands are still relying on profits from their conventional gasoline models to support the growth of their new-energy vehicle initiatives. As a result, the new-energy vehicle business for these automakers is largely operating at a loss, making gasoline cars play a crucial role in sustaining the companies' overall financial health. 
Faced with the increasingly widening dynamic between the growing new-energy vehicle market and the traditional fuel-car market, we should avoid simply pitting the development of new-energy vehicles against that of fuel-powered cars. As technology continues to advance and costs decline, new-energy vehicles are poised to capture a larger market share in the future—though currently, fuel-powered cars still hold certain advantages. Meanwhile, China’s new-energy vehicle market has rapidly transformed—from a promising "blue ocean" to a fiercely competitive "red ocean," and now even into what some call a "blood-soaked sea"—all within just a few short years. Earlier, many industry insiders have pointed out that 2024 will be a pivotal year for new-energy automakers; their ability to carve out a clear and competitive niche in the market will ultimately determine whether their brands can remain firmly seated at the table.

Today, the automotive market is in a fiercely competitive phase, with numerous players vying for a share of the expanding industry pie. Before this lucrative "cake" becomes fully established, every automaker is eager to grab a larger slice—leading to an endless stream of promotional tactics and intensifying internal competition, which has already become the new normal. This trend continued unabated into 2024. Back in 2023, Wang Chuanfu, Chairman of BYD, clearly stated that over the next three to five years, BYD would engage in price wars—or more precisely, price battles within specific market segments—and that the company was fully prepared for this strategic move. Throughout 2023, China's auto market, particularly the booming new-energy vehicle sector, witnessed relentless direct or indirect price cuts and promotional offers. Brands went to great lengths to maintain their positions, determined to secure their place in the second half of the game. 
There's no doubt that stimulating the market through pricing is undeniably the quickest way to achieve results. Today, price wars have shifted from being a last-resort tactic in the past to becoming a standard feature—indeed, this year’s price battle has kicked off even earlier than in 2023. Automakers are choosing to lower prices at the start of the year precisely to maximize the promotional impact. Earlier, a senior executive from a new brand candidly admitted in an interview that both conventional marketing strategies commonly adopted by followers and the current competitive landscape are compelling other automakers to join the next round of price wars. Of course, Tesla and BYD, which ignited the price war back in 2023, emerged as the biggest winners: Tesla surpassed 600,000 retail sales in China, with its Model Y firmly securing the top spot in the new-energy SUV segment, while BYD notched up over 3 million vehicles sold, clinching the title of sales leader in the new-energy passenger-car market. 
In 2024, BYD dropped a major "bomb" on the market by lowering the price of the Qin PLUS DM-i, putting pressure on its competitors while also demonstrating its determination to expand market share—and, of course, subtly "preheating" the upcoming launch of the Qin L. Thus, the sentiment that "the battle begins right at the start of the year" seems to have become a consensus across the automotive industry. Everyone may already be mentally prepared for this year’s fierce price war and intense competition for market dominance. Still, it’s worth reiterating: For automakers financially strong enough to weather the price war, responding calmly and strategically is perfectly feasible. But for brands that find themselves in a weaker position, blindly following the trend could prove risky. Instead, the real key lies in quickly identifying and implementing their own unique path to survival and recovery. In fact, behind the price wars in the automotive market this year—especially as we enter the Year of the Dragon—lies each major automaker’s forward-looking assessment of this year’s competitive landscape.

Xiaopeng Motors CEO He Xiaopeng stated in his opening letter to all employees that this year marks the first year for Chinese brands as they enter a fiercely competitive "sea of blood"—essentially, the inaugural year of an elimination-style battle. Meanwhile, Lu Juncheng, General Manager of SAIC-GM-Wuling, candidly admitted, "The era of Wuling's legendary 'god car' is over; we’ve transitioned from market leader to follower." Additionally, Gan Jiayue, CEO of Geely Auto Group, echoed this sentiment in his own opening letter, emphasizing that 2024 will see intense competition across pricing, product innovation, services, and even digital traffic—making it "the most competitive" year yet. Zhang Yongwei, Vice Chairman and Secretary-General of the China Electric Vehicle 100 People Association, believes that from 2024 to 2025, the automotive industry will undergo a profound period of transformation. For companies competing in this rapidly evolving landscape, he predicts this will be a critical juncture—a time when only the strongest players survive, akin to the "washing away of sand by powerful waves." Ultimately, while industry consolidation may accelerate, this challenging phase also presents significant growth opportunities for many enterprises. 
He also emphasized that 2024 will undoubtedly be a critical period of "winnowing the wheat from the chaff," as the market sees an even greater variety of new-energy vehicle models being launched. In 2023 alone, over 1,100 new-energy vehicle models were introduced to the Chinese market, signaling that the automotive industry has officially entered the "Moore's Law era" of rapid innovation and competition. Additionally, William Li, founder of NIO, previously noted that the battle among automakers will intensify significantly over the next one to two years. As companies prioritize cost reduction and efficiency gains, it’s likely that we’ll witness even fiercer price wars after the Spring Festival holiday—so don’t be surprised if you see more aggressive pricing strategies emerging. After all, this could very well become the new normal for the industry in the years ahead. 
Zhu Jiangming, founder, chairman, and CEO of Leapmotor, previously stated, "Intense competition—'juàn'—is a positive force. Only through relentless competition can we carve out a competitive edge in the new-energy vehicle market, enabling us to swiftly seize market share from traditional fuel-powered cars. After all, scale is key to gaining industry influence and earning consumers' trust. However, companies must remain vigilant, as the current wave of internal competition within the automotive sector is rapidly weeding out weaker players. Witness the exodus at WM Motor, wage arrears at AiChi Auto, asset freezes at Skywell Auto, and now even HiPhi, which announced production halts earlier this year, teeters on the brink of collapse. Ultimately, automakers must navigate this cutthroat environment by identifying growth strategies that align with their unique strengths—because survival itself is paramount. Moreover, simply offering electric vehicles at low prices or boasting impressive fuel efficiency won't be enough to easily capture a significant portion of the gasoline-car market."

Translated from Sina Auto

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