Chinese electric automaker NIO is trying to advocate for an open market as tensions continue to intensify due to the surge of cheaper Made-in-China (MIC) electric vehicles in the international markets.
NIO urges openness in a US speech
According to Reuters, NIO Founder William Li took the opportunity to call for an open market in a rare speech in the United States as American politicians plan to further limit Chinese companies’ access to the second-largest auto market in the world.
NIO Founder Li said at a special event at Harvard University on Saturday that the instantaneous growth of the country’s electric vehicle industry is primarily due to an “open and competitive” market where “all products are welcome regardless of their brands or origins.”
To give an example, Li mentioned Tesla’s major success in the Chinese market. It apparently sold a total of 1.36 million electric vehicles on BYD’s home turf in the past three years alone. He further indicated that Tesla’s market presence increased the country’s EV penetration and boosted the entire industry.
“Competition will lead to greater investment, longer time to break even, less margin for mistakes and lower chances of success. However, we do not expect China to adopt policies to protect domestic players because we also see the other side of the coin, where openness will ultimately benefit industries and sustainability, and make the best companies even better.”
NIO Founder Li
Intensifying tensions
The tension between China and the West continues to worsen over Chinese electric automakers’ exports. Washington and Brussels contend that these exports are substantially subsidized by the Chinese government and could potentially hurt their homegrown automakers.
The European Union is currently investigating Chinese brands, including BYD, Geely, and SAIC, which could result in tariffs over the subsidies.
Meanwhile, several MIC electric vehicles are available in the US. However, they are already subjected to steep tariffs under the Biden Administration. These challenges impede BYD from penetrating the US market, which is the home of its closest rival Tesla.
US eyes potential tariff hike for Chinese imports
Democrat President Joe Biden is exploring the potential of increasing import tariffs on MIC electric vehicles, Reuters reported, citing auto executives.
Moreover, Republican Senator Marco Rubio and Democratic Senator Sherrod Brown reportedly voiced out worries over cheap MIC models, particularly in terms of national security.
Despite these challenges, Founder Li announced that the company is eyeing the possibility of importing its EVs into the US market every quarter. In China, its sales reached a total of 30,053 units in the first quarter of the year. However, this figure remains substantially low compared to Tesla’s 132,420 EV sales in the same period.
