- BYD introduces premium brand Sea Lion to compete with Tesla in China’s luxury car market.
- The Sea Lion brand includes a mid-sized, all-electric SUV called Sea Lion 07, directly challenging Tesla’s Model Y.
- BYD surpassed Tesla as the world’s largest EV maker in the previous year.
- Despite its success, BYD has primarily focused on electric and plug-in hybrid cars for the low- and middle-income demographic.
BYD, the world’s leading electric vehicle (EV) manufacturer, has unveiled a new premium brand, Sea Lion, and introduced the Sea Lion 07 SUV. This move is seen as a direct challenge to Tesla’s established presence in China’s premium EV market, notably with the Model Y produced in Shanghai since 2021. While BYD hasn’t explicitly positioned the Sea Lion series against Tesla, analysts anticipate heightened competition in the world’s largest auto market.
“It will become a tit-for-tat race when BYD builds vehicles similar to Tesla’s Model 3 and Model Y,” said Chen Jinzhu, chief executive of consultancy Shanghai Mingliang Auto Service. “It will be a stern challenge for Tesla because BYD now enjoys a cost advantage over its US rival.”
BYD, supported by Warren Buffett’s Berkshire Hathaway, revealed the Sea Lion 07, an all-electric SUV priced between 200,000 yuan (US$27,879) and 260,000 yuan at the Guangzhou Auto Show. Featuring BYD’s proprietary DiSus body control system, designed to enhance stability during high-speed cornering, the Sea Lion 07 aims to make a mark in the competitive electric SUV market.
BYD surpassed Tesla as the largest global EV maker last year, focusing primarily on affordable electric and plug-in hybrid cars tailored for low- to middle-income consumers in mainland China, priced between 100,000 yuan and 150,000 yuan. In contrast, Tesla’s Model Y, manufactured at its Shanghai Gigafactory, starts at 266,400 yuan. According to UBS, BYD’s Chinese production facilities hold a cost advantage over Tesla’s Shanghai assembly, with a 15% lower production cost for the BYD Seal EV, potentially competing with Tesla’s Model 3. In April, BYD showcased its high-end model Yangwang U8, a luxury vehicle priced at 1.1 million yuan, emphasizing its prowess in car design and manufacturing.
Market experts drew parallels between the U8 and the Range Rover in terms of appearance. With a 3.6-second acceleration to 100 km/h from a standstill and a unique four-wheel-side motor enabling “tank turns” and sideways “crab-walking,” the U8 stands out. In the competitive landscape of the mainland Chinese EV market, Tesla contends with Li Auto, Xpeng, and Nio. These companies strive to develop cutting-edge battery-powered vehicles with autonomous driving capabilities and advanced digital cockpits. Despite a 34.2% month-on-month decline in October, where Tesla’s Shanghai Gigafactory delivered 28,626 units to mainland customers, the competition remains fierce, marked by technological innovation and market dynamics, as indicated by data from the China Passenger Car Association (CPCA).
