YangWang is a million-level high-end brand of BYD. It has gotten much attention since its birth. Recently, BYD released sales data. It shows that YangWang U8 sold 1,592 units in December 2023. This put it at the top of the list of luxury cars that cost a million or more yuan in China. The sales exceeded many people’s expectations. They were for a million RMB autonomous off-road vehicles.
On January 11, the Economic Observer reporter confirmed this to BYD insiders. They confirmed that the above sales of YangWang U8 were actual deliveries. If we add 408 units delivered in November, nearly 2,000 consumers have paid for the YangWang U8. YangWang released the news. They said U8 orders exceeded 30,000 units. About 30,000 orders are backlogged. The cars are worth up to 30 billion RMB, based on a rough calculation of a million RMB per car.
YangWang U8 is the first model launched by BYD’s YangWang brand. It is in the new energy off-road SUV category. The luxury version was listed on September 20, 2023, and started delivery in November. It costs 1.098 million RMB. Since its launch, the YangWang U8 has focused on its “black technology”. This includes turning in place, wading, and staying stable even after a flat tire. But, its price of up to one million RMB has sparked heated discussions.
YangWang sold more than 1,500 units in August. This shows its brand broke the one million RMB price ceiling. So, who exactly did YangWang U8 sell to? BYD insiders told the Economic Observer that the company has no detailed user portrait of YangWang U8.
YangWang U8 owner feedback
The reporter said the test drive and review of the YangWang U8 are by self-funded car reviewers and media. Therefore, some people joked that YangWang U8 was not sold to these “special groups”? Also, the reporter found that YangWang U8 appeared on some car rental platforms.
An Economic Observer reporter interviewed several owners. They talked about the YangWang U8 for many common reasons. First, they chose the YangWang U8 for its cool features. These include turning in place and wading. They believe these features are not in the current model, so the YangWang U8 is very attractive. Second, their financial strength is relatively strong. YangWang U8 is not the first luxury car in the family, not even the second car, but the third or fourth car. “I am 39 years old and working in the energy industry. Before that, my family owned many imported cars worth over one million RMB. But, I know that much of the price of these cars is paying for the brand. Comparatively speaking, YangWang is more cost-effective.” Chen Xiao (a pseudonym), owner of YangWang U8 from Ningxia, told the Economic Observer. Chen Xiao showed a screenshot to reporters. It said he owns YangWang U8, an Aston Martin DB11, a Bentley Tian Yue, and a Range Rover. They are worth about 2.5 million, 3 million, and 2 million RMB.
The price is over 1 million RMB, which most people consider very high. But, Chen thinks the YangWang U8 is a “good value” in its class. This is because it has new technologies not on other cars, like the “Yi Sifang” and “Yunqi.” Also, the U8 has three lidars. The leather package gives the whole car a more satisfying luxury feel.
Do you want to buy YangWang U8?
Wang Hua (not his real name), another would-be car owner who has already paid a deposit, is from Guangdong province. “I’m a 34-year-old graphic designer who used to own an Audi A6L, and the YangWang U8 is the third car in the family. After trying YangWang, I found that the car can have so many tricks. There are some functions and options that may not be used or are unnecessary, but I still hope to have them. I just had enough money, so I placed a passionate order.” Wang Hua told the Economic Observer reporter that from a functional point of view, YangWang U8 is worth starting as a “big toy.”
Mr. Sun from Yunnan is mainly focused on the off-road performance of the car. Mr. Sun, 40 years old, owned a Mitsubishi Pajero and Nissan Tule and later bought an NIO ES8. He said he likes performance cars and almost only chose Japanese cars. Now, it’s a little inconvenient to use NiO off-road. So, he has been watching the YangWang brand since its release. He paid attention to the first day of the pre-sale.
When does YangWang have brand value?
The Economic Observer reporter also found that many consumers are waiting to see about YangWang U8. They are on social media. They discourage them. For this reason, YangWang UB is generally considered not worth the price. So, is YangWang U8 worth millions?
An automotive engineer with years of work experience in Chinese and foreign auto companies said this on social media. He said that, although the U8’s “black technologies” sound cool, they are not so hard to make. If we use the BOM cost method, the motor price of U8 is about 2.5 times that of ModelY. The battery and range extender system is about twice that of the ModelY battery. The U8’s chassis, body, interior, and exterior hardware is about 2 times that of ModelY’s. U8’s accessories are twice as large as those of ModelY. They include smart driving chips, cameras, wiring harnesses, and tires. Rough calculation: the total BOM cost of YangWang U8 is less than twice that of ModelY, which is about 600,000 RMB. On this basis, the gross profit of U8 is also twice that of Tesla, which is about 40%, so the price of U8 should be about 840,000 RMB.
A consulting analyst, who didn’t want to be named, told reporters that for some rich consumers, there is not much brand loyalty. They will buy a brand when they like it. They buy cars even more handsome than our mobile phones. Also, he said that for high-value people, when they buy a car, they often buy not just its use and driving but also its social value. These functions are unique to YangWang. They will be the focus of social interaction. So, even if there is an “IQ tax,” the rich are willing to pay it.
YangWang U8 help Can help BYD improve its market share in the high-end car industry.
From the current sales data, YangWang U8 has caught the eye of a group of “rich brothers.” This was due to a series of “black technology” blessings. However, maintaining steady growth will be a big challenge for YangWang. In China, brands like Promising Cars and High He are high-end. They have lost momentum after getting the first batch of users. Can YangWang break the cycle? In the interview with the Economic Observer reporter, U8 owners and buyers are optimistic about the U8 itself. But, they also said that YangWang is not as tall as international luxury cars. In the current luxury car market, there are millions of cars. They have hundreds of years of manufacturing history. They also have deep technology and brand knowledge. YangWang is a new high-end brand under BYD. It needs time to settle and test its popularity and product reliability.
This car (YangWang U8) is a first-generation car. People around me told me to wait a few months to see the real user feedback before deciding. After all, the current product isn’t mature and there isn’t enough feedback.” The above-listed car owners from Guangdong said. As far as we know, the YangWang brand team and the U8 product still have a lot of room for improvement. They need to improve.” The above owners from Yunnan said.
If YangWang stays popular, it will be key. This is how BYD will become a high-end brand. At present, BYD’s overall sales continue to surge. Still, its main sales are the relatively low price of the Dynasty and Ocean series. To improve profit, BYD has aimed high-end.
Development of YangWang
After the shift to new energy vehicles, BYD recovered Denza’s equity to impact the high-end. Then, BYD quickly launched new products. They also launched two new brands: YangWang and Equation Leopard. Among them, Denza and Equation Leopard cover the middle and high-end consumer market. YangWang is a million-level brand and is the vanguard of BYD’s high-end. It is placed with high hopes.
However, only Denza’s D9 has gotten good market feedback. But, later products did not sell as well. Equation Leopard is in the new off-road wind. Sales are climbing. YangWang costs $1 million and faces more uncertainty.
YangWang’s sales volume in December 2023 shows a “good start.” But, we need to watch its longer-term development. However, some also think that for BYD, the main goal of the YangWang brand is not sales. It is to build a higher brand value for BYD.
The good news is that, in addition to the domestic market, some foreign markets also like YangWang U8. Some used car exporters say a U8 costs over 2 million RMB in Russia. It can even reach 3 million RMB. This means that, in the future, BYD will have the chance to “harvest” rich foreign users. They can do this while meeting the needs of China’s “rich brothers.””
