BYD DM-i Models Refreshed with More Battery Range: PHEVs Step Up Their Game

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Hot on the heels of the Fang Cheng Bao Ti7 PHEV SUV, BYD has started rolling out significant upgrades across its DM-i PHEV models.

First up is the Seal 07 DM-i, a 5-meter-long family sedan that is essentially receiving a mid-cycle refresh a little over a year after it launched. Beyond upgrades to design, materials, and features, the biggest news regards the powertrain. The car has been upgraded to the latest Blade Battery, increasing electric-only range to 135 km for the entry level model and 230 km for the mid- and top-spec models, up from 75 km and 125 km, respectively. In other words, it’s almost double the battery range. Improved DC charging now replenishes that larger battery faster, charging from 30% to 80% in 20 minutes. Once the battery runs out, the vehicle is now rated at 3.2 l/100 km (73.5 mpg).

That was followed by the seven-seat Tang DM-i, with all but the base trim level increasing to 175 km of battery range, up from 115 km.

These models are also being upgraded with heated and ventilated seats, the DiSus-C Intelligent Damping Body Control System and LiDAR-based “God’s Eye” B intelligent driving system on top trims, and a range of interior features, like BYD’s now-ubiquitous onboard refrigerator.

In addition to these models, the General Manager of BYD’s Dynasty Division, Lu Tian, posted (evidently from the gym) that updates will be made to a wide range of other models, with the Han, Song L, Song Pro, and Qin l recently posting regulatory filings with MIIT. These models are all expected to receive the latest Blade Battery for increased range. It should also be mentioned that BYD is rolling out an OTA update for 5^th generation DM-i models that optimizes the system to provide a 10% improvement in fuel efficiency once the battery runs out, starting with the Qin L and Seal 06.

However, prices are not going up significantly, and in some cases, declining. The Seal 07 DM-i starts around $21,000, while the Tang starts around $25,000. Although these prices would be a screaming deal in the US market, they are in the thick of the segment in China, just now offering more vehicle for the money. It appears that the “price war” may be shifting somewhat to a “value war,” with consumers getting better vehicles for the same price. Features and performance that were previously only available in premium vehicles are now being offered at mainstream prices. Legacy ICE is looking increasingly dated and overpriced in the market.

BYD is in a somewhat unique position to do this, as its vertical integration provides control over the supply chain, and it is the most profitable automaker in China. Companies like Nio, who have increased sales through increased losses, are in a tougher spot.

PHEVs Strike Back

Although BYD’s PHEV models saw a decline this year, as strong BEV products entered the market, these significant upgrades stand to reinvigorate sales. However, I do not see them cannibalizing sales from BEV models, as the value offered is different and the BEV models keep getting stronger. I do see them accelerating the market decline of ICE vehicles in China. Paying more for a less equipped and worse performing ICE vehicle simply stops making sense. BEVs and PHEVs accounted for 55.3% market share last month in China, which could be heading for 60% soon.

I also see these models as more likely to be charged, especially in places like China, where the price gap between electricity and gasoline is roughly three times as much as it is in the UK, Germany, and the US. The ability to charge at home and fast charge a PHEV with electric range that was typical of BEVs from a decade ago will make running on electricity more convenient. For people paying to fuel their vehicles, without market distortions like the EU company car benefit, you would be a fool not to charge it up.

Speaking about Europe, the PHEV powertrain in these new models is essentially a generation ahead of the models currently on the road in China, which are a generation ahead of the models available in many export markets. Even so, BYD’s PHEV models are the top selling vehicles with a plug in several markets, including Italy and Spain.

However, barring any anti-PHEV policies or escalating protectionist measures, these more advanced vehicles could both take sales away from ICE vehicles and increase the miles driven on battery versus their predecessors. It will be an interesting dynamic to watch, both within the largest automobile market and within the markets that allow Chinese vehicles to compete.