BYD of China Introduces a Luxury EV Brand

The first of two new luxury electric vehicle (EV) brands that the quickly-expanding BYD, with its headquarters in China, is releasing this year has entered the premium automotive market. According to reports, the Shenzhen-based carmaker unveiled the U8, a sport utility vehicle built under the Yangwang brand, at a media event on Thursday, Jan. 5. BYD stated that the pricing of the SUV would be in the "million yuan" level without providing any further details. That would place it in the top pricing range for Chinese electric automobiles. Currently, the US Tesla Model Y SUV costs $288,900 yuan, or $42,030. Warren Buffett-backed BYD is swiftly catching up to market leader Tesla. It increases manufacturing of its more expensive EVs targeted at affluent clientele and updates its present inventory to manufacture about 70,000 EVs per month from its Shanghai location. [caption id="" align="aligncenter" width="1200"] Image credit- Bloomberg[/caption] BYD also unveiled the U9 on the same day. A luxurious electric sports sedan, that is. Beyond their mechanical details, very little information was provided about the cars. The U8, on the other hand, was boasted to have four electric engines, BYD's signature blade batteries, and the capacity to cross water in an emergency. BYD has already bragged about the safety features of its new premium brand in a film that features driving in icy conditions and with a puncture. The battery and semiconductor company has not stated where the high-end labels would be sold to the general public. Despite Covid's negative effects on the manufacturing industry, BYD saw a growth in sales of new-energy cars, such as EVs and hybrids, to 1.86 million last year from roughly 604,000 in 2021. A senior BYD official claimed in December of last year that production had decreased by at least 2,000 vehicles per day and that 20–30% of employees were unable to reach the workplace because of quarantine requirements. [caption id="" align="aligncenter" width="720"] Image credit- Yicai Global[/caption] Sales of its EVs fell from the prior month at the same period for the first time since February 2022. The Chinese passenger automobile market has experienced a slowdown in growth, with sales rising by just 1.8% to 20.7 million in 2022. Despite this, there is still a continuous demand for EVs. By 2023, the China Passenger Car Association predicts that EV sales would increase to 8.4 million from an expected 6.5 million in 2018. According to Jing Yang, corporate research director at Fitch Ratings, "We look forward to BYD's foreign expansion and the new brands to be released in 2023, which should improve value." BYD shares in Hong Kong is up 7.9% after just three days of trading, compared to a 28% decline in 2022. Tesla's shares fell by as much as 65% last year when the company produced fewer EVs than expected in the prior quarter, and another 12% on Tuesday, January 3.