BYD introduces a luxury car priced at 1.68 million.

China's BYD Launches U9, the Latest Luxury Electric Car in the Market

BYD, following the success of the U8 model, has once again made a significant impact with the launch of the second model in its high-end brand, the U9. Priced at a staggering 1.68 million yuan, the U9 is now the most expensive model in BYD's lineup and the priciest domestically produced electric car available to the public. Positioned in a market dominated by sports car brands like Porsche Automobil Holding SE, Ferrari, Lamborghini, and luxury models from BBA, the U9 aims to set new standards in the electric vehicle market and compete with traditional powerhouses like Ferrari and Porsche Automobil Holding SE in the high-end luxury segment.

With the slogan "electric is cheaper than fuel," BYD is striving to dominate the mainstream automotive market, accelerating the transition from fuel-powered vehicles. Simultaneously, through the U series, BYD aims to establish itself as a technological benchmark in the electric vehicle market and compete with established luxury brands like Ferrari and Porsche Automobil Holding SE.

The U9, unveiled last January alongside the U8, showcases BYD's technological prowess in a production model. The U9, similar to the U8, boasts cutting-edge features such as a carbon fiber monocoque cabin that reduces weight by 30% compared to aluminum alloy, enhancing safety and performance. Equipped with the Yi Si Fang technology and four high-performance electric motors, the U9 delivers over 1300 horsepower, accelerates from 0 to 100 km/h in 2.36 seconds, and reaches a top speed of 309.19 km/h.

Enhanced by the Yun Che - X active body control system, the U9 can adjust power output and body posture for each wheel according to road conditions, ensuring optimal grip during high-speed cornering. This technology also supports the U9's impressive performance in dynamic driving maneuvers.

Professor Zhang Xiang from Yellow River Technology College commented that the U9's high horsepower, top speed, and acceleration performance are outstanding for a pure sports car. However, industry experts point out that challenges such as battery weight, range, and stable full-power output remain obstacles for supercars. While the U9 showcases advancements in electric vehicle technology, there is still a performance gap compared to traditional supercar brands like Porsche Automobil Holding SE, Ferrari, and McLaren.

For instance, the U9's lap time of 2 minutes and 17.65 seconds surpasses that of the BMW M5 and Audi RSQ8 but falls short of the Porsche Automobil Holding SE 911 Turbo S (2 minutes and 11 seconds).

AMG GT R, Ferrari 488 Pista, and other models.

Compared to other supercars that are heavy in weight, even though the U9 boasts over 1300 horsepower (traditional sports cars are around 600 horsepower), its performance is not among the top in the supercar circle.

Zhang Xiang also believes that in the supercar circle, BYD's brand influence is not very high, and many supercar enthusiasts do not recognize the U9 as a representation of their identity.

However, the group of people buying the U9 do not actually drive it on the racetrack for a long time, but rather for daily commuting or to elegantly drive a supercar home for the holidays. Just like buying the U8 is not specifically for off-roading in the wilderness.

This also means that its sales expectations will not be limited by traditional supercar sales. After BYD disrupted the high-end luxury car market with the U8, they are now poised to shake up the supercar market, further achieving comprehensive coverage of various price segments in the automotive industry and a deeper transformation towards pure electric vehicles.

Since its delivery in November last year, the U8 delivered 1593 units in December (the first complete delivery month); in January this year, the monthly sales of the U8 reached 1652 units. With the launch of the U9, there is further room for an increase in U8 sales.

This is also an important exploration for the industry transformation.

In the era of gasoline cars, the absence of supercars in China was a regret in the domestic automotive industry. With the advent of the new energy era, domestic car companies have seized the opportunity, diving into the trend, with a variety of pure electric, hybrid, and other products emerging, independently developing core technologies such as batteries, architectures, and motors, sweeping through the low, medium, and high-end automotive markets, challenging traditional gasoline cars.

However, the electrification process of supercars has been very slow all along, until recent years when models like ZEEKR 001 FR and HAOBO SSR gradually emerged, but they have also been accompanied by doubts and risks.

Currently, there is no widely recognized pure electric supercar.

In 2023, Porsche Automobil Holding SE's global delivery volume was 320,200 units, a 3% year-on-year increase. The only mass-produced pure electric model Taycan saw a decline in sales starting from 2022, with monthly sales dropping to 275 units in 2023.

Other traditional supercar brands such as Ferrari and Lamborghini saw year-on-year global sales growth of over ten thousand units last year, but they do not have pure electric models. As for ZEEKR 001 FR and HAOBO SSR, specific sales figures have never been disclosed.

Now, BYD seems to hope to break this deadlock with its proud technological advantages.

In addition, after firmly holding the crown in global electric vehicle sales and a significant increase in net profit attributable to shareholders in 2023, the high-end transformation represented by the launch of the U9 also has the potential to further enhance BYD's sales and profits amidst the price war.

In 2023, due to large-scale price reductions and increased marketing expenses, BYD's per-vehicle profit is declining. Guotou Securities pointed out that based on the median value in BYD's performance forecast, it is estimated that BYD's non-GAAP per-vehicle net profit in the fourth quarter of 2023 will be 9,100 yuan, a decrease of about 1,400 yuan compared to the previous quarter. With BYD's continuous breakthrough in high-end vehicles, Guotou Securities believes that due to the generally good profitability of high-end models, BYD's profits are also expected to increase.

As Wang Chuanfu mentioned at the Guangdong High-Quality Development Conference, electrification and intelligence are reshaping the luxury car market. Domestic brands, including BYD, are entering a window of high-end transformation.

Taking advantage of its pricing strategy and dominating the discourse in the Chinese market for electric vehicles priced between 100,000 to 200,000 RMB, Wang Chuanfu intends to ride the wave of new energy vehicles and break into the realm of fuel-powered sports cars, carving out its own territory in the high-end luxury market.

This will determine whether BYD can further advance and become a true global automotive giant.