Budget-friendly version of BYD's Yuan Up model unveiled, foregoing advanced driving features
BYD Shifts Strategy with New Yuan Up Variant, Focusing on Affordability
In a move that signals a change in strategy, BYD has introduced a more affordable variant of the Yuan Up electric SUV, priced at RMB 74,800 ($10,400). This new variant, unlike the other three, does not feature a smart driving system, marking a departure from BYD's earlier approach of equipping all models with advanced driver-assistance systems (ADAS) as a standard feature.
This strategic shift comes amidst weaker-than-expected consumer demand for smart driving features in lower-priced models and declining sales within the Yuan family. In the first half of 2025, the Yuan family sold 191,011 units, up 11.96% year-on-year, but the family saw a significant drop in sales in May and June, with 31,711 and 25,727 units sold, down 21.18% and 28.97% year-on-year, respectively.
Earlier in the year, BYD launched a broad "Intelligent Driving for All" initiative, aiming to democratize advanced safety features and reshape competitive dynamics in the EV market. The initiative aimed to equip all models—from premium to budget—with the "God’s Eye" smart driving systems at no additional cost. However, data shows that despite this push, sales of Yuan family vehicles—including smart driving editions—have declined significantly year-on-year in May and June 2025.
BYD’s overall smart driving system rollout focuses on broad affordability and functional value rather than pushing top-tier autonomy. The company plans a gradual penetration of the “Divine Eye” ADAS system across pricing tiers. The reduction in range (from 401 km to 301 km) for the new variant, coupled with the removal of smart driving tech, suggests a repositioning toward cost-sensitive buyers who prioritize price and basic range over advanced features.
Despite this change, BYD continues to invest heavily in software updates and smart driving tech at a larger scale across its overall lineup. This change is a tactical adjustment for the Yuan Up variant specifically rather than a full retreat from the Intelligent Driving strategy.
The Yuan Up has been launched in multiple overseas markets under the name Atto 2, including Europe and Malaysia. BYD's chairman and president, Wang Chuanfu, has stated that advanced smart driving capabilities may become as essential a vehicle feature as seat belts and airbags. However, the company's latest move indicates a recognition that the smart driving features, while strategically crucial for their broader portfolio, have yet to prove compelling in the lower-tier Yuan segment to sustain sales growth. Hence, they have introduced a lower-priced, simpler model without these features to better match market demand and pricing sensitivity.
- BYD's new strategy focuses on affordability, as shown by the launch of a more affordable Yuan Up electric SUV variant priced at RMB 74,800 ($10,400), which lacks a smart driving system compared to other models.
- Amidst declining sales within the Yuan family, particularly in May and June 2025, BYD decided to reposition the Yuan Up variant towards cost-sensitive buyers, offering a model with reduced range and no smart driving technology.
- BYD's overall smart driving system rollout emphasizes broad affordability and functional value, with plans to gradually penetrate the "Divine Eye" ADAS system across pricing tiers, but not as a standard feature in the Yuan Up variant.
- Despite this change, BYD continues to invest in smart driving tech, indicating that the move is a tactical adjustment for the Yuan Up variant specifically, rather than a full retreat from its Intelligent Driving strategy.
- The removal of smart driving features from the Yuan Up variant, sold as the Atto 2 in some overseas markets, suggests a recognition by BYD that these features have yet to prove compelling in the lower-tier Yuan segment to sustain sales growth.
