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China’s BYD Seal Has 25% Cost Advantage Over European, North American EVs, UBS Report Shows
Sept. 6 2023
China’s BYD Seal Has 25% Cost Advantage Over European, North American EVs, UBS Report Shows
(Yicai) Sept. 5 -- The BYD Seal, a Chinese electric vehicle available for sale in Europe, has a 25 percent cost advantage over other European and North American EVs, according to a report by UBS Evidence Lab.
It costs BYD 35 percent less to produce the BYD Seal than its European competitors and Tesla to make their electric cars because of the Shenzhen-based auto giant’s vertically integrated component system and advanced technology, the report showed.
BYD announced the launch of the BYD Seal into the European market on Sept. 4. The model’s 550-kilometer and 700-km range versions are priced at EUR44,900 and EUR50,990 (USD48,165 and USD54,700), respectively, up 43 percent and 84 percent from their China prices.
The gross profit margin of the BYD Seal is about 16 percent, and the model’s earnings before interest and taxes are 5 percent, similar to the figures of fuel vehicles in the global mainstream car market, said Paul Gong, UBS head of China Autos Research.
Seventy-five percent of the BYD Seal’s parts, including the battery, are produced by BYD, according to UBS’ report. Only some components are brought in by external suppliers, such as a few car chips provided by Qualcomm.
Compared with Tesla’s Model 3, which is similar in size to the BYD Seal, the latter has larger interior space, a stronger onboard entertainment system, and vehicle networking. Meanwhile, it is inferior in terms of acceleration, top speed, and automatic driving assistance system.
Rise of Chinese EV Makers Threatens Western Carmakers
Western carmakers are expected to lose about one-fifth of their global market share because cheaper and more cost-effective Chinese EVs will likely take over, the UBS report showed.
By 2030, Chinese carmakers will seize about 33 percent of the global auto market from 17 percent last year thanks to their advantages in the field of electrification, according to UBS.
Meanwhile, Western auto brands will see their market share drop to 58 percent from 81 percent in the period. Tesla’s market share will increase to 8 percent from 2 percent.
In terms of regions, Chinese brands will account for 80 percent of the Chinese market by the end of the decade and increase their shares in the European market to 20 percent from 3 percent.
On the other hand, UBS predicted that Chinese carmakers will not have particular success in the United States, Japan, South Korea, and India.
Sept. 6 2023
China’s BYD Seal Has 25% Cost Advantage Over European, North American EVs, UBS Report Shows
(Yicai) Sept. 5 -- The BYD Seal, a Chinese electric vehicle available for sale in Europe, has a 25 percent cost advantage over other European and North American EVs, according to a report by UBS Evidence Lab.
It costs BYD 35 percent less to produce the BYD Seal than its European competitors and Tesla to make their electric cars because of the Shenzhen-based auto giant’s vertically integrated component system and advanced technology, the report showed.
BYD announced the launch of the BYD Seal into the European market on Sept. 4. The model’s 550-kilometer and 700-km range versions are priced at EUR44,900 and EUR50,990 (USD48,165 and USD54,700), respectively, up 43 percent and 84 percent from their China prices.
The gross profit margin of the BYD Seal is about 16 percent, and the model’s earnings before interest and taxes are 5 percent, similar to the figures of fuel vehicles in the global mainstream car market, said Paul Gong, UBS head of China Autos Research.
Seventy-five percent of the BYD Seal’s parts, including the battery, are produced by BYD, according to UBS’ report. Only some components are brought in by external suppliers, such as a few car chips provided by Qualcomm.
Compared with Tesla’s Model 3, which is similar in size to the BYD Seal, the latter has larger interior space, a stronger onboard entertainment system, and vehicle networking. Meanwhile, it is inferior in terms of acceleration, top speed, and automatic driving assistance system.
Rise of Chinese EV Makers Threatens Western Carmakers
Western carmakers are expected to lose about one-fifth of their global market share because cheaper and more cost-effective Chinese EVs will likely take over, the UBS report showed.
By 2030, Chinese carmakers will seize about 33 percent of the global auto market from 17 percent last year thanks to their advantages in the field of electrification, according to UBS.
Meanwhile, Western auto brands will see their market share drop to 58 percent from 81 percent in the period. Tesla’s market share will increase to 8 percent from 2 percent.
In terms of regions, Chinese brands will account for 80 percent of the Chinese market by the end of the decade and increase their shares in the European market to 20 percent from 3 percent.
On the other hand, UBS predicted that Chinese carmakers will not have particular success in the United States, Japan, South Korea, and India.
