Hong Kong: Chinese EV giant BYD has introduced an advanced driver-assistance system to most of its models at no extra cost, propelling its shares to a record high.
Chinese consumers can now experience the Chinese EV giant BYD proprietary “God’s Eye” driver-assistance system in models starting at just 69,800 yuan ($9,555). Analysts predict that this move could intensify the already fierce price war in the world’s largest car market.
The Chinese EV giant BYD’s stock surged over 4% to a record high in Hong Kong trading on Tuesday, reaching 330 Hong Kong dollars ($42), according to Refinitiv data.
Intelligent Driving as a Standard Feature
BYD Chairman Wang Chuanfu announced on Monday that “2025 will be the first year of intelligent driving for all,” emphasizing that high-level driver assistance features will soon be as standard as seat belts and airbags within the next three years.
The “God’s Eye” feature, initially introduced in 2023 for premium models costing over $30,000, is now available in budget-friendly models, making intelligent driving more accessible to the masses.
BYD’s Market Dominance
According to research cited by Wang, BYD ranked sixth in global car sales in 2024, with another Chinese brand, Geely Auto, securing the tenth position. BYD also led the Chinese market, commanding over 32% of total new energy vehicle (NEV) sales, according to the China Passenger Car Association.
Tu Le, founder and managing director of Sino Auto Insights, believes BYD’s strategy puts competitors at a disadvantage due to its affordability.
Tesla’s Competitive Challenge
BYD’s main competitor, Tesla, offers similar Full Self-Driving features in the U.S. for a subscription fee of $99 per month or a one-time payment of $8,000. However, Tesla is still awaiting regulatory approval to launch trials in China.
Tesla and BYD have been locked in a heated battle for the top spot in battery electric vehicle sales. BYD overtook Tesla in the final quarter of 2023 and ended 2024 by selling nearly 100,000 more vehicles than its American rival in the last quarter of the year.
Le suggests that Tesla may need to rethink its subscription-based pricing model to compete effectively in China’s competitive market.
Impact on Competitors
BYD’s announcement will pressure other Chinese automakers, including Xpeng and Geely Auto, causing their shares to drop on Tuesday.
In addition to its driver-assistance technology, BYD revealed plans to integrate DeepSeek, an AI model developed by a Chinese startup, into its vehicles. DeepSeek gained global attention for developing a chatbot that rivals OpenAI’s ChatGPT.
BYD’s Aggressive Pricing Strategy
BYD has been known for its competitive pricing, a strategy that intensified when Tesla ignited a price war in the EV market two years ago. The battle has become so intense that BYD reportedly asked its suppliers to slash costs by 10% for the coming year.
With its latest move, BYD is redefining the future of intelligent driving while heightening competition in the global EV market.
