I agree the math is a bit off, so let's look at the percentages.
The current Toyota Corolla, in 3-box sedan form, starts at 119,800 RMB in China. The BYD Qin is also a 3-box sedan, similar dimensions, but starts at 109,800 RMB, or 8.4% cheaper.
To compare this directly to the US, a 2024 Corolla starts at $22,050. So this would be like launching the Qin in the US at $19,995. If you did the same percentages it'd be $20,210, but "$19,995" gets you the "Under $20,000" which would be extremely noteworthy in the US where there's not much left under $20K. They'd probably be willing to eat $215/unit of margin at launch just to be able to run with "Starting at under $20K" in advertisements until the sales really roll in, then raise the price a bit 2 years later to get the margin they wanted.
The current Toyota Corolla, in 3-box sedan form, starts at 119,800 RMB in China. The BYD Qin is also a 3-box sedan, similar dimensions, but starts at 109,800 RMB, or 8.4% cheaper.
To compare this directly to the US, a 2024 Corolla starts at $22,050. So this would be like launching the Qin in the US at $19,995. If you did the same percentages it'd be $20,210, but "$19,995" gets you the "Under $20,000" which would be extremely noteworthy in the US where there's not much left under $20K. They'd probably be willing to eat $215/unit of margin at launch just to be able to run with "Starting at under $20K" in advertisements until the sales really roll in, then raise the price a bit 2 years later to get the margin they wanted.