The relatively low prices of BYD in the Chinese market are mainly due to large-scale production, advantages of local supply chains, and government policy support. As a leading global manufacturer of new energy vehicles, BYD has mastered core component technologies such as batteries, motors, and electronic controls through a vertical integration model, significantly reducing production costs. Its independently developed Blade Battery not only increases energy density but also reduces material waste through structural innovation, while the DM-i hybrid system achieves low fuel consumption with the Xiaoyun engine that has a thermal efficiency of 43%. Government subsidies for new energy vehicles (such as purchase tax exemptions) and investment in charging infrastructure have also indirectly lowered the terminal selling price. In contrast, export models usually see a price increase of 30%-50% in overseas markets due to the additional costs of tariffs, transportation, and local certification. This price difference reflects the cost advantages of localized manufacturing rather than differences in product quality.
