BYD Launches New EV Price War with Free Smart-Driving System

BYD Co. has initiated a new phase in China’s electric vehicle (EV) price war by integrating advanced driver-assistance features across most of its lineup at no additional cost, propelling its shares to a record high. At a highly anticipated event in Shenzhen, BYD announced that its God’s Eye driver-assistance system will be standard in vehicles priced from 100,000 yuan ($13,700) and included in several lower-cost models, such as the popular Seagull hatchback.

While assisted driving is a key battleground for automakers in China, vehicles with similar features from competitors typically sell for more than 150,000 yuan, and some manufacturers charge extra for the technology. Tesla Inc., which is awaiting approval from Beijing to roll out trials of its Full Self-Driving features, charges $99 a month in the US.

“This is basically a non-price-cut price cut disguised as a smart-feature update on almost all BYD branded vehicles,” said independent China autos analyst Lei Xing. BYD shares surged 4.5% to a record high at the start of Hong Kong trading on Tuesday, boosting its market value to $132 billion—more than Ford Motor Co., General Motors Co., and Stellantis NV combined. The gain followed a 21% rally last week in anticipation of Monday’s event.

The move to democratize advanced driving features could help BYD, which sold over 4 million vehicles last year, widen the gap over Tesla and domestic rivals such as Xpeng Inc. and smartphone giant Xiaomi Corp., which have not been able to make such technology available on lower-cost vehicles. “This year will be the first for intelligent driving for everybody,” BYD Chairman Wang Chuanfu said at the company’s headquarters. “It will become a must-have in the next two to three years, just as a seatbelt or an airbag.”

BYD also plans to integrate software from DeepSeek, the Chinese startup that recently stunned global markets with its open-source AI model, without specifying when that would happen. The company also claimed it has obtained China’s first Level 3 assisted driving testing license.

Analysts largely welcomed BYD’s announcement, saying it will give the company an advantage over rivals like Tesla. “The sheer volume of model launches could make it difficult for peers to make timely responses,” Morgan Stanley analyst Tim Hsiao wrote in a note. “BYD has now gone from 0 to 1 in assisted driving development, which will accelerate the adoption rate of Navigation on Autopilot function in the mass market and lead to a wave of upgrades by existing users,” Jefferies’ analysts said.

First unveiled in 2023, God’s Eye relies on cameras and radar sensors to assist drivers with features including valet parking, adaptive cruising, and automated braking. China, the world’s biggest car market, has embraced driver-support features in a way few other places have, with most automakers providing technology that’s between Level 2 and 3—giving drivers certain degrees of support with tasks like steering and braking.

After going all-in on fully electric and plug-in hybrid vehicles in 2022, BYD has focused on upgrading its powertrains. Last year, it unveiled hybrids capable of driving more than 2,000 kilometers (1,200 miles), and it’s expected to launch the successor to its lithium iron phosphate Blade batteries this year, which could add more range, faster charging, and more durability.