Will BYD slash electric car prices to match 2025 MG4, GWM Ora and others, or import cheaper EVs such as the Seagull?

Is BYD going to go match other Chinese brands with significant discounts on electric vehicles (EVs)? Or will it release an even cheaper city car based on the Seagull hatch?

MG slashed the base-grade price of the acclaimed MG4 small car by over 20 per cent to $30,990 drive-away to the end of October to clear old stock. The current offer is $32,990 drive-away until the end of January 2025, but MG has not confirmed what the price will be from February on. The cheapest GWM Ora is now $35,990 drive-away, the significantly smaller BYD Dolphin EV supermini from $38,990 before on-road costs now seems less than stellar value.

As a result of the MG4’s price drop, it became Australia’s most popular EV in October, ousting the Tesla Model Y, as well as the second-best selling small car after the evergreen Toyota Corolla.

According to Australian importer EV Direct CEO, David Smitherman, the cons outweigh the pros when it comes to heavy price discounting, particularly regarding resale value.

“I think competition is going to be a great thing for consumers and what consumers are benefiting from,” he told CarsGuide.

“(But) I think brands have to be very careful about pricing structures and methodologies.

“That's the beauty of a free market, is that people will make decisions for their future and for their brand. But, from our perspective, we're very keen to grow the brand we here for the long term.

“We're very careful and considered in our pricing methodologies. We've now sold over 30,000 vehicles, and we'll always try to be competitive in the marketplace. And we're very mindful of consumers and residual values for sure.”

That said, back in April this year, EV Direct did drop the price of the more-expensive version of the Atto 3 crossover, to the tune of about 10 per cent, to clear stocks in preparation for the MY24 facelift.

The larger-battery Extended Range (ER) fell from $51,011 before on-road costs to $45,990 driveaway in most Australian states, making it cheaper than the smaller-battery Standard Range (SR) grade that remained on sale at $48,011 before on-road costs.

Today, the Atto 3 Series II SR and ER start at $44,499 and $47,499 respectively, both driveaway.

So, does this mean that the Dolphin will stay as BYD’s least-expensive model?

Previously, Smitherman flagged the pint-sized Seagull city car (also known as the Dolphin Mini in some countries) as a way into affordable EV ownership for Australians.

However, the ferocious discounting by MG, GWM and others, along with the unexpected success of the Sealion 6 midsized SUV (it’s currently the bestselling PHEV in this country) and strong initial demand for the Shark 6 may have prompted EV Direct to think twice.

“Is the Seagull still a potential candidate? Absolutely,” he said.

“The Seagull is a very big seller internationally, and the vehicle itself is a terrific vehicle. It is a great size. I think there is definitely a market for it in Australia.

“(But) my immediate focus is really on SUV and ute, and that's where we see the really large segments in Australia.

“For me, SUV and ute are our focus”.

So, that’s a no in the EV price war against its Chinese compatriots.

Finally, will BYD match MG’s 10-year warranty launched earlier this year?

“We're always looking at every aspect of the business, but we're quite happy with where, where we're sitting at the moment,” Smitherman said.

“We've invested heavily in in aftersales with additional team members and systems and processes, but at this point, we are content with where we are at.”