A major Chinese EV company is now providing free driver assistance technology on vehicles priced under $10,000.

Chinese electric vehicle (EV) manufacturer BYD has made a bold move by adding its proprietary advanced driver-assistance system, "God’s Eye," to a wide range of its models at no additional cost. This development has propelled BYD’s shares to a record high, signaling a significant shift in the competitive landscape of the electric vehicle market.

The "God's Eye" system, first introduced in 2023, assists with car navigation and is now available in BYD vehicles starting at just 69,800 yuan ($9,555), making it accessible to a broader base of Chinese customers. The decision to include this feature at no extra charge is expected to further intensify the ongoing price war in China’s highly competitive automotive market.

BYD's stock surged more than 4% when trading resumed in Hong Kong on Tuesday, reaching an all-time high of 330 Hong Kong dollars ($42), according to Refinitiv data. The company’s chairman, Wang Chuanfu, addressed the move during an event at the company’s Shenzhen headquarters, asserting that “2025 will be the first year of intelligent driving for all.” He further predicted that advanced intelligent driving technology would become a standard feature in automobiles, akin to seat belts and airbags, within the next three years.

Previously, the "God's Eye" system was only available in BYD models priced above $30,000. However, with this new development, the system is now accessible in more affordable vehicles, potentially revolutionizing the entry-level electric vehicle market.

BYD’s growing presence is evident, as it ranked sixth in global car sales, with China’s Geely Auto following in tenth. The company also dominates the Chinese market, holding over 32% of total new energy vehicle sales in 2024, according to the China Passenger Car Association.

Analysts are now predicting that BYD's move will put significant pressure on competitors, particularly Tesla, which has also been expanding its autonomous driving features. Tesla’s Full Self-Driving (FSD) package is available in the U.S. via a subscription model priced at $99 per month or a one-time payment of $8,000. However, Tesla is still awaiting regulatory approval to launch similar services in China, which could force the company to reconsider its subscription-based strategy in the Chinese market.

Tu Le, founder of the consultancy Sino Auto Insights, remarked that BYD’s decision to offer such advanced features at an affordable price puts its competitors "on their heels." The move is also likely to affect other Chinese rivals, such as Xpeng and Geely Auto, whose shares dropped in response to BYD's announcement.

In addition to its driver-assistance system, BYD revealed plans to integrate DeepSeek, an AI model developed by a Chinese startup that gained global recognition for its high-performing chatbot, which rivals OpenAI’s ChatGPT, into its vehicles. This addition could further enhance the driving experience and cement BYD’s position at the forefront of the EV market.

BYD's aggressive pricing strategy has been a key driver behind its success in the highly competitive EV sector. The price war, which was ignited by Tesla two years ago, has reached new heights, prompting BYD to request significant price reductions of 10% from its suppliers for the upcoming year.

As the global EV market continues to evolve, BYD’s latest move could have far-reaching implications for both domestic and international competition.