The price of BYD electric cars in its home country, China, turns out to be much cheaper than in other countries, including Indonesia. As quoted by Autoblog on Monday (29/4/2024), BYD sells their electric cars outside China at prices that are 2 to 3 times higher.
This is done to gain large profit margins that cannot be obtained by automotive manufacturers in China amid fierce competition.
Take the example of the BYD Atto 3 sold at a price of Rp 515 million in Indonesia. In China, the BYD Atto 3, or known as BYD Yuan in China, is sold at a price of 119,800 yuan or equivalent to Rp 270.4 million. This means that the price difference of BYD Atto 3 in China compared to Indonesia is almost double.
Autoblog also noted that this condition occurs in other countries, not just Indonesia. It is not surprising that many parties are cautious and concerned about BYD’s policy regarding the selling price of their electric cars.
“BYD dramatically increases export prices compared to the prices it charges domestically rather than offering lower prices than foreign competitors,” explained Autoblog.
Unfortunately, BYD refused to comment on such a significant price difference. However, previously, BYD Chairman Wang Chuangfu in March 2024 stated in a meeting with investors that BYD hopes exports can help increase profitability this year.
Autoblog itself notes that the price difference is actually common. However, according to Sam Fiorani, an analyst from AutoForecast Solutions, such a significant price difference as done by BYD for foreign markets is rare.
“Globally marketed vehicles are usually priced in a narrow range,” said Fiorani.
He added that the large export prices compared to the domestic market indicate the potential for large cost profits. Moreover, according to him, China has successfully reduced the production costs of electric cars. Not to mention the significant subsidies provided by the Chinese government.
“The increase in export prices gives BYD room to generate much larger profits per vehicle,” he said.
