BYD Makes Strides in European Market
BYD, China’s leading electric vehicle (EV) manufacturer, is expanding aggressively into Europe. Despite facing new EU tariffs, BYD remains undeterred. The company is the sole carmaker sponsoring the Euro 2024 tournament, a strategic move that boosted views of BYD models on Auto Trader by 69% during the event’s first weekend.
EU Tariffs Challenge Chinese Automakers
The EU plans to impose tariffs on Chinese EVs, including BYD, due to alleged unfair subsidies. BYD might face a 17.4% tariff, lower than other Chinese manufacturers like Geely and SAIC Motor. These tariffs aim to protect Europe’s car industry, employing over 3 million people. However, experts doubt tariffs alone will slow BYD’s advance in the European market.
BYD’s founder, Wang Chuanfu, likened these tariffs to a recognition of China’s growing automotive strength. Wang, who founded BYD as a battery company in 1995, has transformed it into the world’s second-largest EV manufacturer. BYD briefly overtook Tesla in 2023 and continues to expand its global footprint.
Subsidies and Market Impact
BYD benefits from significant subsidies, including €2bn in 2022, supporting its development. The company’s headquarters in Shenzhen rivals Volkswagen’s Wolfsburg, and local government aid has been crucial. Unlike older Chinese petrol cars, BYD’s EVs offer high-quality features and competitive pricing. Their Dolphin model, for example, starts at £25,490 in the UK, significantly higher than its price in China, allowing room to absorb potential tariffs.
BYD’s background in battery manufacturing provides a competitive edge. The company’s use of lithium iron phosphate (LFP) batteries, which are cheaper and efficient, exemplifies this. Vertical integration, including owning chip factories, further reduces costs. BYD plans to produce 4 million vehicles in 2024, half of which will be purely electric.
Expanding Beyond Cars
BYD’s ambitions extend beyond cars. It has a strong presence in the electric bus market, including partnerships in the UK. However, the company remains cautious about its public image, recently rescinding an invitation to UK journalists for a bus event.
BYD’s entry into Europe symbolizes China’s growing influence in the global EV market. Despite EU tariffs, BYD’s strategic moves and innovative technologies position it as a formidable competitor. As the global transition to green energy accelerates, BYD’s role will be crucial.
About BYD
Founded in 1995, BYD is a global leader in EVs and energy storage solutions. The company produces advanced lithium batteries and has a significant presence in over 170 countries. BYD’s comprehensive product range includes cars, buses, and innovative green energy solutions.
Source：theguardian.com
