China's leading electric vehicle (EV) maker BYD on Monday launched a new version of its best-selling car at a price lower than the final price of its discontinued predecessor, as a price war rages in the world's largest automobile market.

BYD has already set lower launch prices for a slew of models as EV rivals including domestic peer Geely Auto and US champion Tesla likewise introduce incentives to woo customers in a cooling market.

China's top-selling EV maker has set a starting price for its new Yuan Plus crossover - known as the Atto 3 in overseas markets - at 119,800 yuan ($16,644), BYD said in a Weibo post.

That is 11.8 percent lower than the final sales price of the version it has replaced, Reuters calculations showed.

BYD sold 412,202 Yuan Plus EVs in 2023, with 100,020 of them exported, or 42 percent of its total car exports for that year, data from the China Association of Automobile Manufacturers showed.

The automaker has been counting on overseas markets for higher profit margins. The Atto 3 is sold with a starting price of A$48,011 ($31,336) in Australia, 85 percent higher than in China.