Tesla rival BYD is on track to further intensify Chinese electric automakers’ dominance in Europe with the launch of its $10,000 Seagull electric hatchback in 2025.
Low-cost BYD Seagull EV threatens European automakers
BYD announced in April that it will launch the new Seagull electric hatchback in the European market in 2025, according to Bloomberg.
BYD currently sells the Seagull EV for less than $10,000 in China. In Europe, the Chinese company still expects the electric hatchback to cost less than €20,000 ($21,500) despite potential tariffs and modifications to meet the local standards.
This pricing would make the Seagull EV thousands cheaper than electric runabouts that Stellantis NV, Renault SA, and others plan to leverage to advance in the highly competitive market.
The BYD Seagull’s imminent European launch intensifies the pressure on European brands despite the Brussels’ anti-subsidy investigation that seeks to protect them.
“We are looking very closely at this model and others coming from Chinese EV makers. Of course, we are nervous when new competition is coming to the market.”
Martin Sander, head of Ford Motor Co.’s European EV business
Enticing customers with innovative features at an affordable price
The BYD Seagull boasts premium features such as a rotating touch screen and wireless phone charging for only sub-$10,000 in the Chinese market.
The Chinese electric hatchback received significant recognition for its build quality, design, and technology. In fact, it already gaining traction overseas, including in Mexico where it goes by the name “Dolphin Mini.”
“[Mexico] is not great for us, but in the end we found a lot of demand, a lot of heat for this.”
BYD Executive Vice President Stella Li said at an event last week in the capital
The Seagull features BYD’s Blade Battery technology, offering improved safety, longevity, and potentially faster charging compared to li-ion batteries. It also comes with a clean and clean and user-friendly interior layout, featuring a central touchscreen and minimal physical buttons.
Can European carmakers compete?
According to BYD’s European Managing Director Michael Shu, the company plans to unveil a higher-end model with a €25,000 price tag before the electric city car.
In addition, it plans to operate two local factories to alleviate the adverse effects of any EU tariffs meant to slow down its expansion.
As Tesla Chief Elon Musk warned in January, Chinese electric automakers will “pretty much demolish” most automakers without trade barriers. While the US government has imposed a major tariff hike against Chinese EVs, it is more complex for the EU.
European automakers are more reliant on the Chinese market compared to American players, making them more vulnerable to retaliatory measures.
For instance, the Chinese government warned on Wednesday that it could impose a 25% tariff rate on imported cars with large engines, potentially affecting Mercedes-Benz Group AG and BMW AG.
All that said, it would be very challenging for European electric automakers to defend their market share against their Chinese counterparts, but not impossible. They can strive to develop and launch lower-cost yet innovative models to remain competitive in the market.
