Chinese electric vehicle (EV) maker BYD has set a goal of "zero traffic accidents" with its self-developed autonomous driving technology. The strategy aims to sharply lower the price burden compared with Tesla and to cover all costs in the event of an accident.
According to the South China Morning Post (SCMP) on the 28th (local time), BYD Chairman Wang Chuanfu held a press conference in Shenzhen, China, that day and announced that the price of BYD's advanced driver assistance system (ADAS), "God's eye," has been set at 12,000 yuan ($1,770, about 2.7 million won). Tesla's ADAS costs $99 per month, and over two years of use it amounts to $2,376 (about 3.57 million won), far exceeding the price of BYD's system.
"The vehicle is equipped with more than 10 devices, including cameras and radar," Wang said. "It is as if dozens of eyes monitor road conditions 24 hours a day with no blind spots." While he did not disclose the commercialization timing, the company decided to set the price of vehicles equipped with this system at less than 100,000 yuan ($14,200, about 22 million won). Currently, most Chinese-made vehicles with ADAS cost more than 150,000 yuan, and Tesla's, based on the "Model 3," is $36,990, 2.5 times higher than BYD's.
ADAS is a function that allows drivers to drive with their hands off the steering wheel. BYD's ADAS is a "Level 3" technology among autonomous driving levels, one step more advanced than Tesla's currently released Level 2+. BYD decided to take full responsibility for costs if an accident occurs while the technology is operating.
The announcement was analyzed as BYD's intention to expand its EV market share by making smart vehicles at lower cost. Nick Lai, head of automotive research at JPMorgan, said, "Manufacturers are at a crossroads, choosing between improving production technology to lower costs and cut prices, or launching new vehicles with upgraded technology at the same price."
