On July 29, Fang Cheng Bao, BYD’s off-road vehicle brand, caused waves in China’s automotive market with a dramatic 50,000 yuan price cut on its Bao 5 (Leopard 5), slashing the price to 239,800 to 302,800 yuan (33,000 to 41,700 USD). Launched last November, the Leopard 5 has been struggling to make a dent against Great Wall’s dominant Tank series. This bold price reduction, combined with a significant dealer network overhaul and the brand’s first external dealer recruitment in five years, marks a game-changing move for Fang Cheng Bao in the fiercely competitive off-road market.
Fang Cheng Bao’s price reduction has not been universally welcomed. Existing customers, some of whom have lodged complaints or protested at dealerships, are dissatisfied with the move. Many protested with banners, “Waited 3 months for car delivery, Fang Cheng Bao cuts 50,000 yuan in one day, should have bought a Tank instead.” Industry insiders are skeptical about the potential for a significant sales boost in the niche off-road vehicle market from this reduction alone.
Meanwhile, the new energy off-road segment is heating up. The Deepal G318 (see specs) recently entered the market, priced at 175,900 yuan (24,400 USD). It offers dual-motor all-wheel drive and a rear axle differential lock. Higher-end models, priced at 229,900 yuan (31,900 USD), include air suspension and CDC dampers, features previously seen in models above 260,000 yuan (36,070 USD).
Fang Cheng Bao’s price cut directly challenges Great Wall’s Tank series, particularly the popular Tank 300 (see specs). Despite declining sales in other brands, Great Wall’s Tank remains intense with a loyal customer base. The Bao 5’s lower fuel consumption and compatibility with 92-octane gasoline make it economical. Many believe its initial lack of popularity stemmed from its high price.
BYD is confident in its sub-brand, Fang Cheng Bao, which has aggressively lowered prices to attract mainstream buyers and recruited top dealers. As 2024 progresses, the rivalry between Fang Cheng Bao and Tank will benefit consumers with better deals and more options in the new energy off-road market. It remains to be seen if Fang Cheng Bao will compensate existing customers upset by the price cut.
BYD should have been more aware about this. It is either they introduced a model A, then another model B with new drive, the update model A with the new drive. Now they cut price. With all these doings, from the consumers point of view, of course they would feel short change. Paid this much with long waiting time, then same new model cut price or come with new drive.
BYD need to organise itself with such strategy. Car range naming issue, introduced improved models in a short period of time (Earlier buyers feel short change), then worse, cut price (Earlier buyers felt even more short change)
These protests have had the effect of keeping the price cut in the news. When the price cut happened, it barely got any attention. Now, we get in-depth coverage. Hopefully BYD can find some solution to appease the relatively small number of previous buyers.
However, there are likely two big drivers of this price cut:
– With the launch of the Shark on the same platform, mass production will increase supply of both vehicles and economies of scale drive will down costs.
– As BYD looks to export markets, the lower price in China helps them have pricing flexibility without accusations of dumping.
Still to expensive for a car with a 1.5 liter moped engine