The BYD Price War Isn’t Over, It Just Got Smarter: A Report from the Showroom Floor

In late June, headlines declared that BYD’s aggressive price war in China was over. Many believed the era of massive discounts had come to an end. As I predicted at the time, this wasn’t an end, but a strategic shift—the beginning of a new chapter.

To get the ground truth, I went directly to the source: a BYD dealership. What I found confirms that the price war is far from over. It has simply evolved.

Fact Check 1: “Did Prices Actually Go Up?” The Answer is a Firm “No.”

The first question I asked the salesperson was about the rumored price hikes. Their response was immediate and clear: “No, the car prices have not increased. The policies have changed.”

This is the crucial distinction the market missed. BYD hasn’t raised its sticker prices; it has restructured its promotions.

Fact Check 2: The New Math of Discounts

So, what has actually changed? I used the popular Qin Plus DM-i as a case study.

• In June: The cash discount was 11,000 RMB.
• In July: The cash discount is 10,000 RMB.

The direct discount was reduced by a mere 1,000 RMB (approx. $140 USD). Meanwhile, the generous trade-in subsidy of 5,000 RMB remains unchanged. For newer, strategic models like the Qin L, the combined package of discounts, trade-in incentives, and potential scrap subsidies can be even more attractive than before.

This isn’t a retreat from discounting. It’s a shift from indiscriminate “cash bombs” to a “precision strike” strategy, targeting specific models and buyer types.

Conclusion: The Price War Isn’t Over, Round Two Has Begun

My visit to the showroom floor made one thing crystal clear: reports of the price war’s death have been greatly exaggerated.

What we are witnessing is not the end of the war, but a change in its nature. Round One, characterized by brute-force cash discounts, is over. Now, Round Two has begun—a “smarter price war” fought with a sophisticated combination of targeted discounts, trade-in subsidies, financing deals, and regional incentives.

BYD has chosen a more complex path than a simple price hike. This signals that the intense competition in China’s auto market is not cooling down. It’s just getting more strategic. For consumers, this means the era of deals is still here, but it requires a smarter approach to navigate the new landscape of bundled offers. The war is on.

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