BYD unveils its latest direct competitor to Tesla

BYD Vice President Yang Dongsheng speaks at a launch event for the Denza N7 electric SUV on July 3, 2023, in Beijing.

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BEIJING — Chinese electric car giant BYD is launching a new electric SUV, its most direct competitor yet to Tesla’s Model Y.

BYD’s Denza brand said Monday evening it received more than 20,000 pre-orders for its N7 all-electric SUV, and announced a price range of 301,800 yuan to 379,800 yuan ($41,680 to $52,452).

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That rivals Tesla’s Model Y, whose latest prices range from 263,900 yuan to 363,900 yuan, according to the company’s China website.

The Denza N7 is set to begin deliveries in about two weeks, according to the company.

“The Denza N7 is aimed squarely at the premium midsize crossover segment whose competition includes the Tesla Model Y and the Nio ES6,” said Tu Le, founder of Beijing-based advisory firm Sino Auto Insights.

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“Denza has really been under the radar for a few years but BYD is ready to show off its rejuvenated brand and the media blitz points to their confidence in the product and their desire to keep pressure on the incumbents,” he said.

During Monday’s hour-plus launch event, BYD showed clips of local car media’s positive reviews while doing test drives.

A livestream of the event had nearly 2 million views on Weibo alone, the Chinese Twitter-like platform. That’s far above the 200,000 views that a Nio car launch livestream drew in late 2021.

In another page from Nio’s playbook, the Denza N7 launch in Beijing was followed by a live music performance.

Mercedes-Benz Group has a 10% stake in the Denza brand. Its prior electric model, the D9 multi-purpose vehicle, claims more than 10,000 sales a month since since March. That car is available in Thailand, and is set for release in Hong Kong, Macao and Europe, a brand representative said Monday, without sharing dates.

Tech features

From fast battery charging and in-house driving assist tech, to an array of in-car entertainment, the Denza N7 launch showed off features in stiff competition with what Nio, Tesla and other leading players in China’s electric car market offer.

“Denza N7 is the first luxury SUV to penetrate the market of BBA,” a slide at the launch event read in English, referring to the trio of high-end German brands Benz, BMW and Audi.

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