China’s biggest carmaker BYD has shaken up the electric vehicle industry yet again this week after announcing it will offer cutting-edge self-driving systems on all its vehicles — including its cheapest Seagull model — for free.
The carmaker put 21 models equipped with its “God’s Eye” advanced driver-assistance system (ADAS) on sale on Monday.
“[We are] starting an era where autonomous driving is for everyone,” BYD’s founder Wang Chuanfu said at a livestreamed launch event.
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The technology is “no longer an unattainable luxury, but an essential tool . . . like safety belts and airbags”, Wang was quoted as saying by The Financial Times.
BYD has deployed three different versions of the “God’s Eye” ADAS across its line-up. All three offer automated parking and lane-keeping features, with the basic version – available on models costing up to 219,800 yuan ($30,078.69) – enabling autonomous driving on highways. The driver must keep their hands on the wheel and take control when necessary.
Two higher-end versions will be installed on more expensive BYD-branded cars and its premium Denza and Yangwang brands. These will enable a car to drive autonomously — though also under human supervision — in more complex urban traffic.
BYD’s move to introduce self-driving to its cheapest EV models — priced as low as just $9,555 — far undercuts its rivals.
Analysts say it could start a new price war in an already hyper-competitive market, comparing it to how China’s DeepSeek recently roiled the global AI sector with its low prices.
The “era of smart driving popularisation has come,” Nomura analysts wrote in a note on BYD’s announcement.
Shares in Chinese automakers Xpeng and Geely Auto tumbled on Tuesday on concern they will struggle to compete against BYD’s move.
Fresh struggles for Musk’s Tesla
BYD’s market-breaking move is also likely to deliver a deep blow to its closest rival Tesla at a time when the Elon Musk-led carmaker is already struggling to shore up sales.
Tesla has these ADAS features available in China in its EVs priced from $32,000. It charges $8,000 for its Full Self-Driving (FSD) driver assistant software in the United States, or $99 a month on a subscription basis. FSD is not yet available in China.
Tesla share prices tumbled 3.8% on Tuesday [1621 GMT], against a smaller 0.1% fall on the broader Nasdaq Composite index.
The carmaker is already struggling with a sharp slump in sales as consumers grow increasingly wary of Musk’s divisive politics. Tesla stock is down more than 11% in the past five trading sessions.
In contrast, BYD’s shares are up nearly 17% over the past five trading sessions.
The European challenge
BYD’s offerings could also weigh on Tesla’s sales in Europe, where a phenomenon dubbed as “Tesla shame” has led potential buyers and existing owners to steer clear of the once pioneer EV-maker.
BYD already enjoys steep price margins in European markets, compared to its local rivals, despite facing an additional 17% tariffs on its shipments to the bloc.
It remains to be seen, however, how much of BYD’s ADAS technology will be available in Europe, where autonomous driving regulations are stricter than in the US. Tesla’s FSD tech is only partially available in the region so far.
For now, BYD has listed its Dolphin compact electric car — which it also sells in Europe — on the list of models that will be equipped with ‘God’s Eye.’
- Vishakha Saxena, with Reuters
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