Comparative Analysis of Competitive Advantages and Disadvantages Between Changan Deepal and BYD

Based on collected data and market information, I will provide you with a comprehensive analysis report on the competitive advantages and disadvantages between Changan Automobile’s Deepal and BYD.

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As a leading enterprise in China’s new energy vehicle industry, BYD achieved total annual new energy vehicle sales of

in 2025, with a year-on-year growth of 7.73%, marking the fifth consecutive year of growth [1]. More importantly, BYD’s annual sales of pure electric models reached approximately , a year-on-year increase of 27.86%, surpassing Tesla (1.636 million units, a year-on-year decline of 8.6%) for the first time, officially being crowned the global champion in pure electric vehicle sales [2]. The company currently has a market value of approximately , with a price-to-earnings ratio of 22.79 times and a price-to-book ratio of 3.98 times, demonstrating high recognition from the capital market [3].

BYD’s success stems from its full industry chain layout in the new energy vehicle sector. It is one of the few automakers in the world that fully masters core technologies across the entire chain, including batteries, motors, electronic control, and automotive-grade semiconductors, building a deep technological moat [4]. From Blade Battery, e Platform 3.0, DM plug-in hybrid technology to Yunni, Yi Sifang, and Sky Eyes, BYD has established a comprehensive technical system covering batteries, electronic control, motors, hybrid power, chassis, intelligent driving, and other dimensions.

As the core smart electric brand under Changan Automobile, Deepal’s annual sales exceeded

in 2025, with a year-on-year growth of 36.6%, hitting a record high; its sales in December reached 30,999 units, exceeding 30,000 units for four consecutive months [5]. Since starting mass deliveries in 2023, Deepal has achieved cumulative deliveries of over 700,000 units in just 3 years, showing strong growth momentum [6].

Positioned as “young, technology-focused, sports brand”, Deepal is committed to providing forward-looking technological experiences for young users. In December 2025, the company obtained China’s first official L3 autonomous driving license, and completed a

in the same month, with investors including Chongqing Yufu Holding Group Co., Ltd., Changan Automobile, and China Merchants Bank Financial Asset Investment Co., Ltd. [7]. This capital operation strategically aligns with the large-scale deployment of L3 autonomous driving vehicles on the road, injecting strong momentum into Deepal’s long-term development.

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Dimension	BYD	Deepal
Battery Technology	Blade Battery (LFP route), Megawatt Flash Charge Battery (400 km range in 5 minutes)	Changan Golden Bell Battery (heat insulation performance 30% better than industry average, zero battery overheating)
Hybrid Technology	DM-i Super Hybrid (5th generation), DM 6.0 to be launched soon	New Blue Whale hybrid-specific engine, 44.39% thermal efficiency, industry-leading
Intelligent Driving	Sky Eyes A/B/C Platform	Tianshu Intelligence 2.0, DEEPAL AD Max, L3 autonomous driving already deployed on roads
Platform Architecture	e Platform 3.0, Series 9 Platform	SDA Platform (Central Ring Network Architecture)

: BYD has a research and development team of approximately in the power battery field, and is one of the earliest automakers in China to launch R&D on lithium iron phosphate (LFP) power batteries. After more than 20 years of accumulation, it has formed a significant technological leading edge [8]. Its R&D expenses in the first three quarters of 2025 reached as high as , far exceeding the net profit of RMB 23.33 billion in the same period, with R&D investment intensity leading the industry [9]. The company expects that the “combination punch” of DM 6.0 + Series 9 Platform + large battery to be launched in 2026 will support the full-domain 900V architecture, achieving a 3-year technological generation gap ahead of competitors [10].

: Deepal is the core undertaker of Changan Automobile’s “Beidou Tianshu 2.0” intelligent strategy. In December 2025, Deepal obtained the first batch of access permits for L3 conditional autonomous driving models from the Ministry of Industry and Information Technology, and took the lead in obtaining China’s first special official license plate for L3 autonomous driving, “Yu AD0001Z” [11]. The company adopts the “Tianshu Intelligence” system, ensuring reliability in extreme scenarios through a seven-fold redundancy architecture (perception, control, power supply, steering, etc.), and has established a million-kilometer-level scenario pool covering complex road conditions in China [12]. It is worth noting that L3-level technology is rapidly “feeding back” to consumer-grade products: Deepal L06 is equipped with the same DEEPAL AD Max system as that used in L3 models, bringing high-level intelligent driving technology down to the mainstream consumer market.

:

• Dynasty Series
  : Classic models such as Qin, Han, Tang, Song, Yuan, covering mainstream consumer groups
• Ocean Series
  : More youthful, global products including Seal, Sea Lion, Sea Lion 06
• Denza
  : Positioned as a new energy luxury benchmark, with the D9 ranking first in sales of luxury MPVs in China for two consecutive years
• Yangwang
  : Breaking through price ceilings with top-tier technology, entering the million-yuan luxury market
• Fangchengbao
  : Entering the off-road and personalized market, with models like Leopard 5, Titanium 7 performing impressively

BYD’s product price range covers

, forming complete market coverage [13].

:
Deepal mainly focuses on the mainstream price range of , with core products including models such as S05, S09, L06, SL03. However, Deepal currently faces certain challenges in product layout: three sedans, L06, L07, and SL03, are highly homogeneous in terms of size, wheelbase, and pricing, creating an awkward situation of internal competition [14]. According to data from Yiche.com, in December 2025, sales of Deepal L07 and SL03 dropped to 588 units and 309 units respectively, indicating the problem of insufficient product differentiation.

Financial Indicator	BYD (002594.SZ)	Changan Automobile (000625.SZ)
Market Value	US$86.339 billion	US$9.669 billion
Price-to-Earnings Ratio (P/E)	22.79x	17.04x
Price-to-Book Ratio (P/B)	3.98x	1.50x
Return on Equity (ROE)	17.62%	8.83%
Net Profit Margin	4.56%	4.15%
Gross Profit Margin (Automobile Business)	Approximately 20.6%	Approximately 3.55% (overall)
Free Cash Flow	RMB 36.094 billion	-RMB 18.711 billion

From the financial data, BYD is significantly superior to Changan Automobile in terms of profitability (ROE, gross profit margin) and cash flow status. BYD’s gross profit margin for auto-related businesses reached

in the third quarter of 2025, while Tesla’s automobile business gross profit margin was only 15.4% in the same period [15]. This means BYD has more room to maneuver in price wars, and also provides financial support for its continuous R&D investment.

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Compared with BYD’s brand influence accumulated over many years, Deepal, as a “second-generation” brand incubated by Changan Automobile, still has significant room for improvement in brand recognition among consumers. Deepal’s first product, the SL03, once adopted a chaotic pricing strategy ranging from RMB 171,900 to RMB 699,900, indicating the problem of unclear brand positioning [16].

Deepal faces a relatively serious internal competition issue in the core price range of RMB 100,000 - RMB 200,000. Three sedans, L06, L07, and SL03, are highly homogeneous in terms of size, wheelbase, and pricing, creating an awkward situation of self-competition. For example, the SL03 only provides basic L2+ level assisted driving functions, while the L06 is equipped with lidar as standard across the entire series. Consumers naturally tend to choose the model with higher configurations at the same price [17].

Although Deepal has a fast growth rate (36.6%), compared with BYD’s annual sales of 4.602 million units, the scale gap reaches approximately 14 times. This scale gap means BYD has significant advantages in supply chain bargaining power, R&D cost amortization, and brand premium.

BYD Chairman Wang Chuanfu admitted at the December 2025 shareholder meeting that the market-leading situation driven by disruptive technologies such as Blade Battery and DM-i Super Hybrid in previous years is being diluted by homogeneous competition in the industry [18]. From September to December 2025, BYD saw year-on-year sales decline for four consecutive months, with sales in December dropping 12.45% month-on-month and approximately 18% year-on-year, marking the largest monthly decline in two years.

In 2025, BYD’s plug-in hybrid vehicle sales reached 2.2887 million units, a year-on-year decline of 7.91%. The extended-range technology route represented by Li Auto and AITO, as well as the “large battery + large fuel tank” super electric platform launched by automakers such as Changan and Geely, are diverting BYD’s market share in the hybrid market [19].

In overseas high-end markets, BYD still lags in brand recognition and premium capability. According to a UBS research report, a market survey in Germany shows that only 12% of consumers are willing to pay the same premium for BYD as they do for BBA (Mercedes-Benz, BMW, Audi), with most consumers still positioning it as a “high-configured and affordable model” [20].

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BYD’s globalization strategy is accelerating implementation. Its overseas sales exceeded

in 2025, accounting for over 20% of total sales. The company’s overseas business covers more than 110 countries and regions, and its sales in 11 core markets including the UK, Germany, and Spain fully lead Tesla [21].

The globalization of production capacity and supply chain is advancing in parallel. In addition to its 10 production bases in China, BYD is building vehicle factories in Thailand, Brazil, Hungary, Uzbekistan, and other regions. To ensure global delivery efficiency, BYD has put

into operation, forming an independent ocean-going transportation fleet [22]. The company plans to further deepen localized development in Europe, Southeast Asia, South America, Japan, and other regions in 2026.

Deepal’s strategic positioning is clear: with intelligent technology as the core driving force, it has established a first-mover advantage in the L3 autonomous driving field. The company has completed a RMB 6.122 billion capital increase and share expansion, with the funds to be mainly invested in new vehicle R&D, innovation of core technologies for intelligentization and electrification, and global brand strength enhancement [23].

As a core brand under Changan Automobile’s “new central enterprise” structure, Deepal is positioned as a core pillar of high-quality development, a backbone of technological breakthroughs, and an important engine for global overseas expansion. This strategic positioning gives it unique advantages in accessing top technical resources within the group, policy support, and attracting capital attention [24].

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Evaluation Dimension	BYD	Deepal
Scale Advantage	★★★★★	★★☆☆☆
Technical Strength	★★★★★	★★★★☆
Brand Influence	★★★★★	★★★☆☆
Profitability	★★★★☆	★★★☆☆
Growth Potential	★★★★☆	★★★★★
Intelligent Driving Leadership	★★★★☆	★★★★★ (L3 Field)

: With its full industry chain layout, scale advantages, and deep technological accumulation, BYD occupies an absolute leading position in the new energy vehicle market. However, the company is facing challenges such as the dilution of its technological leading edge, pressure in the plug-in hybrid market, and insufficient brand premium in high-end markets. The new technologies such as DM 6.0 to be launched in 2026 will be the key to reshaping the competitive landscape.

: As the core carrier of Changan Automobile’s new energy strategy, Deepal has achieved a first-mover advantage in the L3 autonomous driving field, showing strong growth momentum (36.6% year-on-year growth). However, insufficient brand recognition, severe product homogenization, and a huge scale gap remain its main challenges. Deepal needs to strengthen brand building and product differentiation while maintaining technological innovation, to break through in the fierce market competition.

From an investment perspective, BYD, as an industry leader, has stronger risk resistance and profit stability; Deepal has higher growth elasticity but also corresponding higher risks. Investors should make choices based on their own risk preferences and investment objectives.

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[1] Sina Finance - 2025 Year-End “Exam” Results for Automakers Released
[2] Phoenix Net - Global Electric Vehicle Crown Changes Hands
[3] Gilin API - Company Profile Data
[4] Autohome Chejiahao - New Global Pure Electric King Crowned: BYD Surpasses Tesla with Full Industry Chain Advantages
[5] Sohu Auto - 2.913 Million Units Annual Sales: Only the Surface of Changan Automobile
[6] China Finance Online - Changan Automobile Investor Relations Activity Record Form
[7] China Securities Journal - New Stage of Intelligent Driving Commercialization! Deepal’s L3 Autonomous Driving Vehicles Deployed on Roads in Large Scale
[8] 21st Century Business Herald - BYD’s Sun Huajun: Surpassing Tesla Hides 20 Years of Sticking to Lithium Iron Phosphate
[9] Huxiu - What is BYD’s “Game-Changing Technology” Mentioned by Wang Chuanfu?
[10] Shenxuanche - Dethroning Tesla! What Makes BYD the 2025 Global Pure Electric Sales Champion?
[11] Phoenix Net - China’s L3 Autonomous Driving Technology Launches! Deepal Ushered in a New Era of Intelligent Driving
[12] NetEase - Three Met Targets, Eight Fell Short: New Power Players’ 2025 Results
[13] Sina Finance - After Surpassing Tesla, BYD Faces Global Competition Head-On
[14] NetEase Auto - Three Met Targets, Eight Fell Short: New Power Players’ 2025 Results
[15] Sina Finance - After Surpassing Tesla, BYD Faces Global Competition Head-On
[16] NetEase Auto - Three Met Targets, Eight Fell Short: New Power Players’ 2025 Results
[17] NetEase Auto - Three Met Targets, Eight Fell Short: New Power Players’ 2025 Results
[18] Huxiu - What is BYD’s “Game-Changing Technology” Mentioned by Wang Chuanfu?
[19] Huxiu - What is BYD’s “Game-Changing Technology” Mentioned by Wang Chuanfu?
[20] Sina Finance - After Surpassing Tesla, BYD Faces Global Competition Head-On
[21] Shenxuanche - Dethroning Tesla! What Makes BYD the 2025 Global Pure Electric Sales Champion?
[22] Autohome Chejiahao - New Global Pure Electric King Crowned: BYD Surpasses Tesla with Full Industry Chain Advantages
[23] China Securities Journal - New Stage of Intelligent Driving Commercialization! Deepal’s L3 Autonomous Driving Vehicles Deployed on Roads in Large Scale
[24] Phoenix Net - China’s L3 Autonomous Driving Technology Launches! Deepal Ushered in a New Era of Intelligent Driving