In a market where high-tech features are often accompanied by steep price tags, BYD has set a precedent by introducing models equipped with NOA starting at just 69,800 to 79,800 yuanPreviously, consumers and industry analysts alike predicted that vehicles boasting such advanced driving capabilities would start at a much higher range, typically between 90,000 and 100,000 yuanBy breaking these pricing barriers, BYD opens a gateway for a broader segment of consumers to experience the benefits of intelligent driving technologyIt paves the way for a future where smart driving is not solely the province of elite car models but becomes accessible to the everyday driver.

Typically, incorporating high-end features like NOA would result in increased costs for manufacturers, thus leading to a price hike on these modelsSurprisingly, BYD has managed to defy this expectation

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The introduction of NOA hasn’t translated into significant price increases for their vehiclesThis anomaly can be attributed to BYD’s impressive scale and the subsequent economic efficiencies that arise from itAs BYD continues to witness impressive sales growth, its bargaining power in securing component prices has strengthened, enabling it to negotiate discounts of roughly 15-20% from suppliersThis adeptness at managing costs has allowed BYD not only to enhance the sophistication of its products but also to retain price stability, substantially increasing its value proposition in the market.

In an ambitious move, BYD plans to roll out the NOA system across 21 models, suggesting that by the end of this year, it’s anticipated that approximately 80-85% of the vehicles sold domestically will come equipped with this advanced functionalityThis extensive coverage is unprecedented within the automotive industry, positioning BYD as a leader in the smart driving sectorConsequently, in the near future, it is likely that a majority of BYD vehicles on the roads will boast sophisticated smart driving capabilities, significantly boosting BYD’s competitive edge in an already crowded market.

Morgan Stanley emphasized a critical point: the majority of the 21 models configured with high-level driving automation will maintain the attractive entry-level pricing that starts at just around 70,000 yuanThis significant strategic choice not only enhances BYD’s market competitiveness but also catalyzes a rapid increase in the penetration of automated driving technology within the industry as a wholeAs Morgan Stanley posits, the penetration of smart driving features in BYD’s vehicles is expected to rise dramatically, potentially reaching between 40% and 50% by 2025, with monthly sales suggesting that this figure could soar to 80%-85% by year’s end—statistics likely surpassing many of its competitors.

Overall, Morgan Stanley's projections paint a promising picture of BYD's future trajectory

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