BYD cheapest EV gets self-driving software

From the newsletter

Chinese EV manufacturer BYD has upgraded the BYD Seagull, its cheapest car, with autonomous driving software. The car, a hatchback, will be introduced in South Africa this year under a different name: BYD Dolphin Mini. It costs less than $10,000 and is the top-selling EV in markets such as China and Brazil.

• BYD says it will include its “God's Eye” self-driving tech, which enables features such as remote parking and autonomous overtaking, on its entire model lineup, including the Seagull.

• The automaker also said it would integrate home-grown AI models built by Deepseek into its vehicles, joining several of its local rivals in partnering with the Chinese AI phenomenon.

More details

• Since launching in China in April 2023, the Seagull, which has a range of 405 km, has become a force not only in the Asian giant but also overseas. Starting at under $10,000 (69,800 yuan), the Seagull was a major contributor to BYD’s record sales surge last year.

• EV manufacturers, some of whom have already entered the African market such as BYD and Dongfeng, are engaged in stiff competition over introducing AI into their models, as well as rolling out self-driving cars.

• BYD has taken the lead in Africa’s EV market, and has the widest reach of any electric automaker. The company operates in multiple countries, including South Africa, Kenya, Rwanda, Morocco, Ethiopia, Nigeria and Egypt. Its primary models on the continent are Atto 3, BYD Seal and BYD Dolphin.

• When the BYD Seagull lands in South Africa this year as the BYD Dolphin Mini at a price of less than $10,000, it will be cheaper than any EV car not only in the country but also on the continent.

• This price is less than half the cost of the current cheapest electric car in South Africa, the Dayun S5 Mini SUV, which costs $21,600. What is more impressive is that the BYD Dolphin Mini not only beats it in price, but also performance. The Dayun S5 Mini SUV has a range of 300 km, while the Dolphin Mini can go for 405 km.

• Once it has entered the market, the BYD Dolphin Mini is expected to catch on quite quickly in the rest of the continent where BYD already has dealerships. While the overall cost of the car will be determined by the tax rates of specific countries, the car will still cost way less than the existing models. 

Our take

• BYD's decision to upgrade the Seagull with autonomous driving software and sell it for under $10,000 is a game-changer, particularly in emerging EV markets such as Africa. It makes advanced technology accessible to a broader audience, democratizing smart driving features. As users demand smarter features in their vehicles, availability of such innovations at a cost-effective price will grow demand. 

• Africa’s EV market is still tiny compared to the global market. Global EV manufacturers such as Tesla have ignored the continent. But BYD has taken a different approach, launching in multiple markets in Africa and offering cheaper EVs than what is locally available. This move could significantly entrench its market position in the long term and boost the adoption of EVs in regions where cost is a major barrier.

• Competition in the EV market is heating up in Africa. Countries on the continent have taken different approaches on how to grow their local industries. Ethiopia for instance has put a total ban on importation of non-electric vehicles. But the real winner in this competition will be the consumer. This is because competition will continue to drive down prices, making EVs more affordable.