(Yicai) July 14 -- BYD has become the latest Chinese automaker to launch a model overseas before introducing it to the domestic market, pricing the vehicle three times higher than in China, as global sales become a key growth driver for the nation’s carmakers amid falling demand at home.

Pre-sales for BYD’s Denza Z‌ electric supercar started in China yesterday, four days after it came onto the European market. Not unusually for a Chinese automaker, the CNY680,000 (USD100,300) domestic price tag is much lower than abroad. In the United Kingdom, where it debuted, prices range from GBP142,900 to GBP172,900 (USD191,300 to USD231,500).

Chinese carmakers often command much higher prices overseas, partly because of countries’ import tariffs, said Cui Dongshu, secretary-general of the China Passenger Car Association. Cross-border logistics, overseas labor, strict overseas certification, and localization have also become more expensive, Cui noted, adding that overseas markets typically have less intense competition than in China, enabling automakers to achieve wider margins.

Yicai’s analysis of publicly available data shows that at least four Chinese auto models are priced at least three times higher overseas than in China, including the Geely Galaxy E5 and BYD Han EV. More than 10 other models are sold abroad for 1.5 times to 2.5 times the domestic price.

The strategy of launching vehicles overseas before introducing them in China is also showing early signs of success. BYD Executive Vice President Li Ke said the Denza Z generated strong initial interest after its UK debut, securing nearly 20 orders from Serbia on the first day alone. The model has also attracted orders from other European markets and several countries in the Middle East, she added.

Xpeng Motors is taking a similar global-first approach, with its Mona L03 scheduled to launch in Germany before entering the Chinese market. He Xiaopeng, chairman and chief executive, said its European sales have climbed this year and that, starting with the new model, the firm intends to adjust its launch planning for future global products, targeting the international market from the outset.

Global sales have become increasingly important for Chinese automakers this year. In the first half, domestic auto sales reached 9.921 million units, down 21 percent from a year ago, and in May they fell 22 percent year-on-year to 1.53 million, according to data from the CPCA.

Meanwhile, amid a surge in demand for new energy vehicles abroad, China’s first-half car exports soared 65 percent from a year earlier to 5.096 million.

Editor: Tom Litting