BYD dominated the Australian news this week, and not only for the reasons it would have chosen. The brand pushed prices to new lows at the same moment its safety rating and vehicle software drew public criticism.

Pricing: the floor keeps dropping

BYD launched the Atto 2 DM-i from A$24,990 before on-road costs, making the Essential grade the country's cheapest plug-in hybrid; the Premium is A$29,990. The Essential has a claimed 39 km of electric range and the Premium 90 km. BYD argues the car has no direct plug-in hybrid rival among small SUVs and says it will not add conventional hybrids. The electric Atto 1 was also set at A$19,990 drive-away, level with the MG 3 as Australia's cheapest new vehicle.

The timing is awkward. A report on BYD's Australian discounts notes they follow Chinese government guidance urging carmakers to avoid aggressive overseas pricing, and quotes Chery executives and industry advisers warning that sustained discounting could squeeze margins, weaken resale values and strain dealer support.

Safety and software

ANCAP gave the BYD Sealion 5 three stars, the first BYD it has tested to fall short of five. ANCAP chose the model for assessment itself after BYD did not put it forward, and cited lane-keeping that failed to respond in road-edge tests and the absence of child-presence detection, among other gaps. The BYD M9 earned five stars in the same round.

Separately, after a television demonstration in which a security firm manipulated functions on a Shark 6, BYD said it had identified an infotainment software defect and will issue an over-the-air update once testing is complete. The company said initial access required physical contact with the vehicle. Australia is considering draft vehicle security rules based on UN regulations.

Chery also recalled 1,936 Tiggo 4 Hybrids over emissions-system software; it says there is no safety hazard.

Utes and what is coming

What it means

  • Entry prices for electrified cars have never been lower here, and the low end is now set by Chinese brands competing with each other.
  • A cheap price does not carry a safety rating with it: check the ANCAP result for the exact model and grade.
  • Connected-car security is becoming a regulatory question in Australia, not only a brand one. See more at Chinese cars in Australia.