Chinese electric vehicle (EV) giant BYD has introduced an advanced driver-assistance system (ADAS) to most of its models at no extra cost. This bold move sent its stock soaring to a record high, underlining its dominance in the competitive EV market.
Chinese customers can now access BYD’s proprietary “God’s Eye” driver-assistance system in vehicles priced as low as 69,800 yuan ($9,555). Previously, this feature was available only in higher-end models costing over $30,000.
Shares reach record levels
Following the announcement, BYD’s shares surged more than 4% when trading opened in Hong Kong on Tuesday. According to Refinitiv data, the company’s stock reached 330 Hong Kong dollars ($42), marking an all-time high.
“2025 will be the first year of intelligent driving for all,” BYD Chairman Wang Chuanfu declared during an event at the company’s Shenzhen headquarters on Monday. He predicted that high-level intelligent driving will soon be as standard as seat belts and airbags in all vehicles within the next three years.
Intensifying China’s EV price war
BYD’s latest move is expected to intensify the ongoing price war in the world’s largest auto market. Industry analysts believe that by offering this technology at no additional cost, BYD is putting pressure on competitors to match its affordability and innovation.
Tu Le, founder and managing director of Sino Auto Insights, called BYD’s decision a game-changer. “This puts their competitors on their heels,” he said, highlighting how the affordability of BYD’s vehicles makes them even more appealing.
BYD currently leads the Chinese EV market, holding over 32% of total new energy vehicle sales in 2024, according to the China Passenger Car Association. It also ranks sixth in global car sales, with another Chinese automaker, Geely Auto, following in tenth place.
How this affects Tesla and other competitors
Tesla, BYD’s main rival, has a similar Full Self-Driving feature in the U.S., available via a subscription of $99 per month or a one-time payment of $8,000. However, Tesla is still awaiting regulatory approval to launch its autonomous driving trials in China.
Le suggested that Tesla might have to reconsider its subscription-based model when competing in the Chinese market. “BYD is forcing Tesla to rethink its pricing strategy,” he said.
Besides Tesla, other Chinese EV makers like Xpeng and Geely Auto may also feel the heat. BYD’s announcement sent their shares tumbling on Tuesday, as investors anticipated increased competition in the sector.
BYD integrates AI for smarter vehicles
At the same event, BYD revealed another major innovation: the integration of DeepSeek, an artificial intelligence model developed by a Chinese startup. DeepSeek recently gained global attention for developing a chatbot that rivals OpenAI’s ChatGPT.
The integration of AI-powered software into BYD vehicles marks another step toward making its cars smarter and more competitive in the global market.
BYD’s aggressive pricing strategy
BYD is known for its aggressive pricing approach. The EV price war, initially triggered by Tesla two years ago, has intensified, with BYD taking an even more aggressive stance. Late last year, the company asked its suppliers to reduce costs by 10% for the coming year, aiming to maintain its competitive edge.
With its latest ADAS rollout, BYD is not only driving innovation but also pushing its competitors to either match its offerings or risk losing ground in the highly competitive EV market.
