BYD Co. debuted its most expensive car Sunday, a 1.68 million yuan (US$233,450) high-performance fully-electric supercar pitted against luxury gas-guzzling options offered by rivals such as Ferrari NV and Lamborghini.

The Yangwang U9 will initially be exclusively for the China market, the company said at a live-streamed event in Shanghai. The car can hit 100 km/h (62 mph) in 2.36 seconds and reach a top speed of 309.19 km/h, it said.

BYD became the world’s biggest electric vehicle (EV) seller — overtaking Tesla — in the last quarter of 2023. While it is better known for making affordable EVs, the company markets its luxury models under the Yangwang and Fang Cheng Bao brands.

With a post-Lunar New Year price war looming in China, the Shenzhen-based giant is betting there remains a market for high-end products which deliver better margins.

Other pricey EVs under the Yangwang brand are due to launch later this year in China, including a luxury sedan that will cost around 1 million yuan.

Yangwang started delivering cars in late November. It has one production model so far, a luxury sports utility vehicle known as the U8 which costs 1.1 million yuan. The company has delivered 3,653 units as of the end of January.

Meanwhile, BYD chairman Wang Chuanfu proposed doubling a buyback of its Shenzhen-traded shares to 400 million yuan. The company said the move could boost investor confidence, and stabilize and enhance the company’s value.

The automaker’s Hong Kong-listed shares have fallen 12% this year as investors punish EV stocks over concerns sagging demand is forcing companies to cut prices, and impact margins.

The company is rolling out refreshes of its existing line-up using the tagline “electricity is cheaper than oil,” cutting prices as well. Morgan Stanley said in a Feb. 19 note that the move is likely targeting combustion engine brands and models including Nissan Motor Co. and Toyota Motor Corp. (SD-Agencies)