BYD Full Self Driving
BYD's decision to offer its advanced driver-assistance technology without cost has disrupted the electric vehicle market, particularly challenging Tesla's premium pricing model. X / Tycho de Feijter @TychodeFeijter

Tesla's steep pricing for its Full Self-Driving feature is now under pressure, as a leading Chinese electric vehicle manufacturer offers a similar capability at no extra cost.

BYD, the Chinese electric car giant, has introduced an advanced driver-assistance system across nearly all its models, causing its stock prices to surge. Drivers in China can now experience BYD's innovative 'God's Eye' driving system—even in the brand's most affordable vehicles, which start at just £7,457.46 (69,800 yuan).

BYD's Bold Move Shakes Up the Market

Industry watchers think this action might intensify the fierce price competition in the largest auto market on the planet. When trading opened in Hong Kong on Tuesday, BYD's stock jumped over 4% to an all-time high, according to Refinitiv. It was last seen trading at £32.59 (330 Hong Kong dollars).

Wang Chuanfu, the head of BYD, announced at their Shenzhen headquarters on Monday, '2025 will be the first year of intelligent driving for all.' According to Wang, advanced intelligent driving will be a must-have in cars, similar to seat belts and airbags, within the coming three years.

The 'God's Eye' system, a navigation aid BYD launched in 2023, used to be available only in their higher-end cars, those over £23275.95 ($30,000).

BYD's Winning Formula

Wang pointed out, using data from the state-linked media group Cailianshe, that BYD is now sixth in worldwide car sales, with fellow Chinese automaker Geely Auto in tenth place. He added that BYD also leads the Chinese market, capturing over 32% of all new energy vehicle sales in 2024, according to the China Passenger Car Association.

Tu Le, who started Sino Auto Insights, a consulting firm, noted that BYD's pricing strategy 'makes their rivals scramble' because it's so budget-friendly. BYD's primary competitor, Tesla, provides its comparable Full Self-Driving capabilities in the United States, charging a £76.81 ($99) monthly fee or a £6206.92 ($8,000) upfront cost. It is still in the process of gaining permission to begin testing within the Chinese market.

Chinese Rivalry Challenges Tesla's Dominance

The battle for global battery electric vehicle supremacy between BYD and Tesla is fierce. In the last three months of 2023, BYD moved ahead of the American firm. Despite Tesla's lead during parts of 2024, BYD closed the year with a nearly 100,000-unit sales advantage in the fourth quarter.

Le suggested that Tesla might have to change its subscription model when it launches in China. Beyond Tesla, BYD's news is also likely to put pressure on other Chinese companies, such as Xpeng and Geely Auto, whose stock values fell on Tuesday.

DeepSeek AI: BYD's Next Tech Leap

The company also shared at Monday's event that it will be putting DeepSeek, the AI system developed by a Chinese startup that made news last month with a top-notch chatbot similar to OpenAI's ChatGPT, into its cars.

BYD's reputation rests on its strong pricing tactics. The price competition, started by Tesla two years prior, has escalated to the point where BYD demanded that its suppliers provide substantial 10% discounts for the upcoming year in late 2023.

As BYD's strategic move reshapes the landscape, the automotive world watches closely. The question now is how Tesla and other competitors will respond. This shift signals a pivotal moment, not just for the Chinese market, but for the global evolution of autonomous driving.

Originally published on IBTimes UK

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