Chinese new energy vehicle giant BYD has officially launched the third model of its high-end brand Yangwang, which is cheaper than the two others.

Priced from CNY628,000 (USD86,450), the Yangwang U7 comes in the pure electric and plug-in hybrid versions and features two seating layouts, one with four and the other with five seats, the Shenzhen-based automaker announced yesterday.

Before the U7, Yangwang had released two other models, both priced above CNY1 million (USD137,000). The U8, a sports utility vehicle, began deliveries in November 2023, and its sales surpassed the Audi A8 L in January last year. The U9, an all-electric supercar, launched right after. Yangwang sold about 7,000 U8 and U9 last year.

The U7 has a competitive price and is equipped with the YunNian Z, an advanced electric vehicle suspension system that applies electromagnetic technology previously used in magnetic levitation trains to automobiles, filling a technological gap in vertical electric control, said Wang Chuanfu, BYD’s chairman and president.

The price of the U7 and its advanced technology are expected to bring fresh wind to China’s large-sized luxury car market, also known as the Class D market segment, which has been dominated by fossil fuel vehicles from established foreign brands for a long time.

According to data from the China Passenger Car Association, sales of Class D new energy passenger vehicles surged 79 percent in January from a year earlier, the highest increase among all car market segments.

BYD expects its sales to climb 29 percent to 5.5 million units this year from 2024, with overseas sales likely exceeding 800,000 units, Wang noted during the company’s latest earnings conference call, adding that high-end NEV models will play a crucial role in achieving such goal.