U.S. and European politicians are afraid of Chinese EVs: BYD

U.S. and European politicians are afraid of Chinese EVs: BYD

Amidst the world’s accelerating shift from conventional gas-powered vehicles to electric powertrains, Chinese automakers continue to make momentous inroads into global markets, stirring concerns among American and European politicians. Highlighting these apprehensions, BYD CEO Wang Chuanfu has stated that these apprehensions are a testament to Chinese auto industry’s growing popularity in the global EV landscape.

With the U.S. and European politicians’ plans to implement new tariffs and taxes on Chinese EVs, the competition in the global market is escalating, signaling a critical juncture for the industry.

Chuanfu cited a number of examples of U.S. and European politicians who openly expressed their concerns, warning that low-cost Chinese EVs could adversely hit their local businesses.
Highlighting the West’s worries, the Chinese automaker’s chief said, “There are many examples of politicians in other countries who are worried about EVs in China .... If you are not strong enough, they will not be afraid of you.”

The top executive’s comments surfaced as the U.S. and Europe lawmakers aim to decrease imports of Chinese EVs by imposing new tariffs. The U.S. recently hiked tariffs not only on China-made EVs but also on batteries and essential minerals.

In Europe, European Commission (EC) President Ursula von der Leyen announced the launch of a probe into China-made EVs following the alleged dumping of cheaper electric cars into the global markets by China

In retaliation, China warned that it could impose a hefty tariff of 25 per cent on imports on imports from Western countries.

Chinese automakers continue to enjoy an unprecedented jump in their global sales over the past couple of year, thanks to their pricing strategies. Just last month, BYD reported its second-highest sales following the launch of a series of new low-cost EVs and PHEVs.

For instance, BYD’s new Seagull EV comes with a pocket-friendly price tag of merely 69,800 yuan (approx. $9,700) in the Chinese market. Even in foreign markets, this EV is one of the cheapest electric models to choose from. In the Latin American country of Brazil, the Seagull EV starts at 99,800 BRL (approx. $20,000). Earlier this week, BYD unloaded 7,000 EVs and PHEVs on the shores of Brazil.

Chinese automakers’ innovative electric transportation solutions and aggressive pricing strategies are posing a big challenge to well-established Western automakers, instigating regulatory responses. However, industry executives like BYD’s Wang Chuanfu believe that escalating competition could play a crucial role in the transition to electric mobility by nurturing innovation across the industry.

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