BYD Chairman and Chief Executive Wang Chuanfu contends that foreign markets are “afraid” of low-cost China-made electric vehicles, hinting at the United States and Europe.
BYD points to tariffs as evidence of competition concerns
The BYD boss asserted in a speech at an industry conference in Chongqing on Friday that there are many foreign politicians anxious about the competence of Chinese electric vehicles, according to Bloomberg.
“There are many examples of politicians in other countries who are worried about EVs in China.”
BYD Chairman and Chief Executive Wang Chuanfu
Chairman Chuanfu further emphasized that the recent actions of Western countries demonstrate the dominance of China’s automotive industry.
“If you are not strong enough, they will not be afraid of you.”
BYD Chairman and Chief Executive Wang Chuanf
Intensifying trade tensions
The EU is on track to announce the import tariffs against Chinese electric vehicles in the coming weeks.
For context, it is the expected outcome of the EU’s investigation into China’s government subsidies for its EV industry.
This move threatens to suppress the fledgling market for Chinese electric cars in Europe. Unsurprisingly, China has threatened to retaliate with hefty tariffs of its own on European goods, potentially escalating tensions.
Meanwhile, the US has already quadrupled the import tariff on China-made EVs from 25% to 100%.
Chinese EVs continue to surge in the global market
Chinese electric automakers are making significant strides into the European market. This trend is expected to accelerate despite potential trade tensions.
Dataforce’s data revealed that Chinese brands like MG Motors and BYD accounted for nearly 9% of all battery-electric vehicles sold in Europe last year. This figure is projected to surge to a hefty 20% by 2027, according to industry group Transport & Environment’s remarks in March this year.
BYD presents itself as a major force in the Chinese EV industry. In 2022, it officially halted the production of its popular gas-powered cars. Its commitment to electrification has paid off with an astounding 3 million electric and hybrid vehicle sales last year.
Amid the intensifying trade tension, the BYD boss called for the industry on Friday to welcome fierce competition as a way to accelerate the shift towards electric vehicles. It has initiated a price war in China by slashing prices across their entire range of EVs and plug-in hybrids to undercut ICE-powered cars, directly challenging established automakers like Toyota and Volkswagen.
