BYD Prioritizes Europe, Denza Z Price Breaks Twice China's Price

JAKARTA - BYD launched the Denza Z electric supercar in Europe before marketing it in China. The price difference is wide. In the UK, the model is priced almost two to more than twice the price in its home country.

Yicai Global in its report, which was quoted on Tuesday, July 14, said that the pre-sale of the Denza Z in China began on July 13, four days after the car entered the European market.

BYD has set the price of the Denza Z at 680,000 yuan or around 100,300 US dollars in China. In the UK, the price ranges from 142,900 to 172,900 pounds sterling, equivalent to 191,300 to 231,500 US dollars.

Large price differences are not new for Chinese cars sold abroad. Secretary-General of the China Passenger Car Association or CPCA Cui Dongshu said import tariffs were one of the causes.

Cross-country logistics costs, labor, stricter certification, and vehicle adjustments to local market needs also increase prices.

According to Cui, competition outside China is generally not as tight as in the domestic market. This condition gives room for car manufacturers to obtain greater profit margins.

An analysis of Yicai Global of publicly available data shows that at least four Chinese car models are sold abroad at prices at least three times higher than domestic prices. Among them are the Geely Galaxy E5 and the BYD Han EV.

More than 10 other models are marketed outside China at prices 1.5 to 2.5 times higher.

The strategy of prioritizing overseas markets is starting to get a response. BYD Executive Vice President Li Ke said the Denza Z attracted strong interest after being introduced in the UK.

Almost 20 orders from Serbia came in on the first day. Other orders also came from a number of European markets and several countries in the Middle East.

Xpeng Motors took a similar step. The electric car manufacturer scheduled the launch of the Mona L03 in Germany before marketing it in China.

Chairman and CEO of Xpeng He Xiaopeng said the company's sales in Europe increased this year. Starting from Mona L03, Xpeng will set up plans to launch its next product by targeting the international market from the start.

Global markets are becoming increasingly important for Chinese automakers as sales at home weaken.

CPCA data shows that domestic car sales in the first half reached 9.921 million units, down 21 percent compared to the same period last year. In May, sales also fell 22 percent to 1.53 million units.

In contrast, Chinese car exports jumped 65 percent in the first half to 5.096 million units. The increase was supported by demand for new energy vehicles, including electric and rechargeable hybrid cars, in overseas markets.