BYD denies it's starting a price war in Oz: Why the $19,990 2026 BYD Atto 1 won't cheapen the brand as it undercuts Geely EX2, GAC Aion UT

BYD may be offering the cheapest car in Australia, but that doesn’t mean it wants people to think it’s a cheap brand.

The Chinese automotive giant made headlines with its recently introduced $19,990 drive-away deal for the pint-sized BYD Atto 1 electric car. That not only cut about $7000 out of the price, but also made it the cheapest new car on sale at the time of publication.

Typically car makers are reluctant to slash prices dramatically, as that can often have a negative impact on the second-hand value of its models. BYD Australia Chief Operating Officer Stephen Collins is acutely aware of the dangers of dropping prices, but said each more is carefully considered to reduce the impact of resale value to not upset existing owners.

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“We were just talking before, I don't think there's one occasion where we've dropped an RRP (recommended retail price). So residuals are a function of many things, demand and supply, but also what you do at the RRP level. So look, I think we're doing what we can, and I think we're doing an okay job in the residual space.

Collins was speaking to CarsGuide at the launch of the updated Atto 3 Evo, and its predecessor had several price changes during EVDirect’s tenure. In just 2024 the price moved three times in nine months thanks to a combination of drive-away deals and model updates.

Since BYD has taken direct control of the brand, in July 2025, Collins has taken the position of only adjusting the RRP if a new model arrives and requires adjustment.

“The only time we've changed RRPs is when there's a model change. Apart from that, we haven't touched an RRP. Now, we have, and like everyone, we have campaigns  and finance deals and whatever, but we haven't touched an RRP.”

So while BYD is expected to continue offering drive-away deals and other discount offers to drive demand when needed, don’t expect a race to the bottom from the brand as it looks to secure its long-term position in Australia.

But that won't stop the brand from introducing new models at highly-competitive prices, such as the new Atto 2 DM-i. It starts at just $24,990 (plus on-road costs), which makes it the most-affordable plug-in hybrid on sale at the time of publication.