As rivals scramble to keep up, China’s EV giant slashes prices again — this time targeting advanced self-driving features
BYD’s discount machine is back in overdrive. And this time, it’s not just electric vehicles getting the markdown treatment. The company’s off-road luxury brand, Fang Cheng Bao, has rolled out a jaw-dropping 50% price cut on Huawei’s flagship self-driving technology — a move that’s already rattling nerves across China’s auto industry.
This isn’t a one-off gimmick either. Industry insiders say BYD’s pricing playbook is reshaping the competition in real-time, with ripple effects already being felt by startups and legacy brands alike.
A Discount Too Good to Ignore — Or Sustain?
Let’s talk numbers. Huawei’s Qiankun Intelligent Driving High-end Function Package — essentially the brains behind semi-autonomous driving — usually runs about 24,000 yuan ($3,400). BYD is now offering it at just 12,000 yuan, or roughly $1,700.
Yes, that’s more than half off.
The announcement came Wednesday morning without fanfare, but EV watchers picked up the scent almost immediately. Fang Cheng Bao’s move comes less than two months after BYD triggered a major price avalanche by slashing sticker prices on 22 models — some by as much as 34%.
At the time, the China Automobile Manufacturers Association warned the trend was setting off what it called “price war panic.” No brands were named, but everyone in the room knew who they meant.
Now, things may get uglier.
Huawei’s Tech, BYD’s Weapon
BYD isn’t just slashing costs on cars — it’s going for the crown jewels of next-gen driving.
The Qiankun system, developed by Huawei’s Intelligent Automotive Solutions unit, includes Level 2+ and near-Level 3 driving functions like automatic lane changes, adaptive cruise control, and city-level navigation assistance.
And Fang Cheng Bao’s deep discount means:
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Self-driving features, once exclusive to higher-end EVs, are now accessible in lower-priced off-roaders.
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Competitors that use similar systems (or Huawei’s own tech) will be forced to rethink their pricing — fast.
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BYD is betting that value, not just design or range, will dominate the EV arms race.
“Tech like this used to be a luxury feature. Not anymore,” said Lu Chen, a Beijing-based auto industry analyst. “BYD is basically telling the market: If you want smart, we’ll give you smart — cheap.”
Seagull-Like Pricing Mentality Is Spreading
Remember the Seagull?
That’s BYD’s compact city EV that stunned the market earlier this year when its price dropped to under 56,000 yuan — just shy of $8,000. For context, that’s less than some people pay for a high-end smartphone or an e-bike in the West.
And Seagull’s success was no accident. The ultralow price ignited demand while dragging competitors like Wuling, Leapmotor, and Chery into a pricing spiral.
That same pricing mentality now seems to be spilling into the premium segment — but with software and features instead of just hardware.
Who’s Feeling the Heat?
It’s not just Chinese automakers sweating.
International brands with high hopes in China’s EV boom — like Volkswagen, Toyota, and Tesla — are watching with increasing discomfort. Tesla, for instance, has been relatively cautious in its China price cuts in recent months, preferring to push software packages and optional upgrades.
Xpeng and NIO, both big on advanced driving tech, could face particularly tricky choices. They’ve long marketed their proprietary assisted-driving systems as differentiators. If BYD can offer comparable features for less than half the cost, that edge starts to dull — fast.
One Table That Says It All
To put this all in perspective, here’s how BYD’s new offer stacks up against similar smart-driving packages on the market:
| Brand | Package Name | Approx. Price (CNY) | Includes Highway Autopilot? | Includes Urban Nav? |
|---|---|---|---|---|
| BYD (Fang Cheng Bao) | Qiankun High-end Package (Huawei) | 12,000 | Yes | Yes |
| Xpeng | XNGP City/Highway Assist | 24,000 | Yes | Yes |
| NIO | NAD (NIO Assisted Driving) | 39,000 | Yes | Yes |
| Tesla (China) | FSD (Beta rollout) | 64,000 | Yes | No (limited) |
One small paragraph here: BYD’s pricing is shaking the whole ladder.
Officials Warn of ‘Unhealthy Price Competition’
The China Automobile Manufacturers Association hasn’t been shy about its concerns. While not naming BYD directly, their recent statements hint at unease over “subsidy-fueled pricing tactics” that risk damaging the long-term sustainability of the industry.
This week, the group doubled down. “Discounts that compress profit margins to unsustainable levels threaten employment, innovation, and fair competition,” it said in a public note Tuesday.
Privately, executives are fuming.
One CEO of a rival brand was quoted anonymously by Caixin, saying, “We can’t match those prices without laying off staff or cutting R&D. It’s not competition — it’s suffocation.”
Is There a Ceiling to BYD’s Strategy?
Right now, it doesn’t look like BYD’s slowing down.
But how long can it keep slicing profits for market share? Some analysts say the company is playing a long game — using its scale, vertically integrated supply chain, and domestic advantage to build an unbeatable moat.
Others aren’t so sure.
“BYD is burning the candle at both ends,” said a Hong Kong investment banker who tracks EV stocks. “They’re sacrificing margin for dominance. That works until it doesn’t.”
He paused, then added, “But maybe they’ve done the math. Maybe they think no one else can last as long.”
