Introduction
BYD, the "king" of the EV industry, why did they make autonomous driving free?
BYD, which has established itself as one of the world's top automakers in China, made a major announcement in February 2025. It will make its own brand of EVs and other new energy vehicles, which were previously subject to a fee.Advanced Driver-Assistance Systems (ADAS)We have announced a policy to install it at no additional cost.
This announcement sent shockwaves throughout China's EV industry. BYD CEO Wang Chuanfu stated, "Excellent technology should be made available to everyone," and is committed to promoting the widespread adoption of autonomous driving technology.
Why did BYD choose to disrupt the market with its pricing?
This was to replicate the success of 2024. Since 2024, BYD has been introducing a series of low-priced models, aiming to expand its market share with plug-in hybrid vehicles that offer a driving range of 2,100 km on a full charge and a full tank of gasoline, while keeping the price below 100,000 yuan (approximately 2.2 million yen). Global sales reached 4.27 million units, an increase of 411 TP3T compared to the previous year.
This time's ADAS "Tenmoku no Me"
BYD's newly announced ADAS is called "Tianmu Zhi Me" (天目之眼). The driver assistance technology is classified into three ranks: A, B, and C, and the most basic C-type technology will be introduced at no additional cost.
- Type C: 21 models ranging from 70,000 to 200,000 yuan (approximately 1.5 million to 4.2 million yen)
- The compact EV "Haiyu" will be installed at the same price of 78,800 yuan (approximately 1.7 million yen).
The C-type technology supports driving skills equivalent to "Level 2+", providing navigation-assisted lane keeping and autonomous lane changes on highways. It also enables remote parking even when the driver remains inside the vehicle.
Specific details and reasons
The secret behind the lower prices and its impact on the market
1. The key is to avoid using LiDAR.
By not using high-performance sensors like LiDAR, BYD has achieved lower prices for its ADAS (Advanced Driver-Assistance Systems). While expensive sensors are typically required to implement autonomous driving functions, BYD aims to achieve sufficient accuracy using only cameras and AI technology.
2. AI investment and partnership with Huawei
Wang Chuanfu had previously stated that "autonomous driving is nonsense," and the company has been criticized for being behind in the automotive industry. However, since 2024, it has changed its policy, announcing an investment of 100 billion yuan (approximately 2.1 trillion yen) in the field of autonomous driving, and is also pursuing a partnership with pioneering Huawei.
3. Impact on the Chinese EV industry
The ones most apprehensive about BYD's price disruption are emerging Chinese EV manufacturers that have been promoting autonomous driving. Until now, ADAS (Advanced Driver-Assistance Systems) have been installed in high-end EV models costing over 200,000 yuan (approximately 4.5 million yen), but BYD may force them to lower their prices.
4. Acceleration of industry restructuring
The Chinese EV market is currently undergoing a process of consolidation. At the end of 2024, "Giyue," an EV brand jointly operated by Baidu and Geely Group, ceased operations due to financial difficulties. Also in 2024, Human Horizons, which operated the luxury brand "HiPhi," went bankrupt.
- The Geely Group has established a structure in which it places the youth-oriented brand "LINK & COO" under the umbrella of its luxury brand "ZEEKER".
- Chongqing Changan Automobile and Dongfeng Motor Group have revealed their parent companies are planning a merger.
Future Outlook for the Chinese EV Market
Market growth forecast
The China Association of Automobile Manufacturers predicts that sales of electric vehicles (EVs) and other new energy vehicles in China will reach 16 million units in 2025, an increase of 24.41 TP3T compared to the previous year. However, this represents a slower growth rate compared to the 35.51 TP3T increase in 2024.
New energy vehicles account for approximately 50% of total new car sales, but as the market matures, price disruption like that seen from BYD could trigger a further surge in sales.
Implications for the Japanese automotive industry
Japanese automotive industry insiders are giving their assessment of China's EV champion with wry smiles, saying, "We never expected it to be adopted this widely." This is not just a technological innovation, but a change in the business model itself.
Points to note going forward
- As autonomous driving technology becomes more widespread, the importance of security and privacy protection will increase.
- Harmonization with the laws and regulations of each country (especially Japan and Europe) will be necessary.
- The balance between technology and brand value is crucial.
Summary
Implications for technological democratization
The dramatic changes in China's EV industry at the beginning of the 21st century are not simply the result of product competition. They represent a return to the essential meaning of technology—that it should benefit everyone.
There are many lessons we can learn about work and life from BYD's activities.
Firstly, redefining price and value.
While expensive technology was once associated with "luxury," BYD operates under the belief that "good things should be accessible to many people." This is a perspective you should keep in mind in both your work and personal life. It questions the fundamental meaning behind your spending.
Secondly, market maturity and new competitive principles
After a surge in EV sales in 2024, the growth rate is slowing. However, price disruption like that seen with BYD will drive further market changes. This suggests that you should be sensitive to changes in the industry and market.
Thirdly, large corporations also make strategic choices for small businesses.
Even the giant BYD reversed its stance after initially dismissing autonomous driving as nonsense. This demonstrates that organizations of any size need to be flexible and adapt to changing circumstances. You need to understand that your own organization and team are no exception.
Fourthly, both the technology and the business model.
BYD doesn't just introduce technology; it also implements pricing and investment strategies simultaneously. When you introduce new tools or systems at work, you need to reconsider the cost-benefit balance, not just focus on functional upgrades.
From the perspective of the Asahi Shimbun's "Tensei Jingo" column, BYD's actions indicate a "shift in the winds of change." We should always embrace change without fear, and instead adopt a positive attitude towards it. Technological innovation has the potential to change not just the characteristics of a product, but the values of society as a whole.
Ultimately, no matter how brilliant a technology may be, it cannot be considered a true innovation unless it reaches a large number of people. BYD's "price disruption" is a symbolic example of this. Can you share the same mindset of "sharing good things" within the world you belong to?
