BYD Car Prices Double When They Are Sold in Brazil; know more

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According to a study carried out by Reuters, in five of the country's main export markets BYD (Germany, Australia, Brazil, Israel and Thailand), car prices from manufacturer are greater than those practiced in China, the brand's homeland. For the analysis, the research gathered the price of the automaker's best-selling models.

Price Discrepancies

To get an idea, in the respective markets, the initial price charged by the BYD Act 3 (sold in some markets, including Brazil, such as YuanPlus) ranges from 81% to 174% extra compared to China. Here, it is worth highlighting that the brand charges R$ 229,800.

The phenomenon Dolphin, which costs US$ 37,439 in Germany, costs US$ 16,524 in China. In Brazil, however, part of R$ 149,800 (a value close to US$ 30 thousand, that is, slightly less than what is charged in Germany). The electric hatch Seagull (sold here as Dolphin Mini) costs less than US$ 10,000 (R$ 52 thousand, in direct conversion) in China. While, in the Brazilian market, the compact does not cost less than R$ 115,800.

Reasons Behind Prices

To try to get rid of prejudice against Chinese brands and attract customers, BYD tried to structure itself before officially reaching the market. In this way, it achieved a huge advantage in comparison with foreign competitors and, thus, can charge more competitive prices without giving up profits.

BYD, in principle, controls the entire production chain and, therefore, manufactures everything from raw materials to batteries. Therefore, it does not depend on suppliers. Which, consequently, avoids headaches, losses and losses. It also benefits from Chinese government subsidies for the electric car industry and, even with export costs, its profit margins abroad remain much higher than in China – where there is enormous competition.

In addition to knowing how to structure the business before putting sales into practice, BYD has the advantage of lower battery prices in China. There, the value is almost 20% less than on the European continent, for example, which ends up making the product itself cheaper. Finally, profit also comes from hiring cheap labor, which has always been evident in the Asian country.