BYD’s Next Affordable Electric Hatchback Seen Testing in China

BYD’s dominance in affordable electric cars shows no sign of slowing, and fresh spy shots from China suggest another small hatchback is already deep into development. The camouflaged prototype was recently spotted testing on public roads in Shenzhen, offering the clearest indication yet that BYD is preparing a new entry-level EV to sit alongside, or potentially below, the Dolphin.

Images shared on social media reveal a compact hatchback with familiar proportions, immediately drawing comparisons to the Dolphin that has become one of BYD’s most important global models. The silhouette looks clean and upright, hinting at a practical city-focused design rather than a sporty one, which fits neatly with BYD’s recent push into mass-market electric mobility.

▶️MORE: 2025 BYD Dolphin EV Price and Specs

Similarities With Existing BYD Models

At the front, the wheels appear similar to those used on the Atto 1, known as the Seagull in China. Around the back, a charging port is visible on the right-hand side, matching the layout seen on rear-wheel-drive BYD models such as the Seal sedan and Sealion 7 SUV. That detail alone has sparked speculation that this hatchback could adopt a rear-drive setup, something that would help differentiate it from many front-wheel-drive rivals in the affordable EV space.

Timing also offers a clue. With testing now underway, the new hatchback is widely expected to be targeting a 2026 launch, potentially debuting with updated software, refreshed electric motors and BYD’s latest lithium iron phosphate Blade battery technology. That would allow it to slot neatly into BYD’s next generation of global EVs, many of which are expected to roll out over the next two years.

▶️MORE: BYD ATTO 1: Australia’s Cheapest EV

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What This Means For Australia?

For Australian buyers, the context is especially interesting. BYD’s local journey started with the Atto 3, followed by the Dolphin in 2023, which was briefly the cheapest EV on sale here. That title returned in early 2025 when the Dolphin Essentials arrived at $29,990 before on-road costs, only to be undercut again by the Atto 1 at $23,990. A new small hatchback could allow BYD to refresh its entry-level offering once more, particularly as competition from Chinese brands intensifies both at home and overseas.

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With rivals like Geely already selling huge volumes of low-cost electric hatchbacks in China and preparing for global expansion, BYD clearly has strong incentives to keep pushing down-market. If this mystery hatchback makes it to Australia, it could further reshape expectations around how affordable a new electric car can be.