BYD Co. Chairman Wang Chuanfu asserted that European and US politicians are apprehensive about the growing influence of Chinese electric vehicles (EVs) on their markets. Wang, the 58-year-old billionaire founder of China’s largest auto company, highlighted this reaction as a testament to the strength of China’s burgeoning car industry.
“Foreign countries are ‘afraid’ of Chinese electric vehicles,” Wang stated, suggesting that such concerns arise when a nation’s industry becomes formidable. He emphasized that competitiveness is key, stating, “If you are not strong enough, they will not be afraid of you.”
The European Union is anticipated to introduce tariffs targeting Chinese EVs soon, following investigations into Beijing’s subsidies for electric vehicles. This move is expected to impact the small, yet growing, number of Chinese EV imports into Europe. In response, China has hinted at imposing its own 25% tariffs, escalating trade tensions between the regions.
Chinese brands such as MG Motors and BYD Co. accounted for nearly 9% of battery-only vehicles sold in Europe last year, with projections indicating a rise to around 20% by 2027, according to Transport & Environment. BYD, which ceased production of combustion engine cars in 2022, has become a significant player in the global EV market, selling 3 million electric and hybrid vehicles by last year.
Wang urged the automotive industry to embrace heightened competition amid the transition to electric vehicles. Recently, BYD initiated a price war in China, reducing the costs of its EVs and plug-in hybrids significantly. This move challenges traditional automakers like Toyota and Volkswagen, promoting the slogan “electricity is cheaper than oil.”
“Electric and hybrid vehicles are on their way to surpassing conventional engines,” Wang affirmed, underscoring an unstoppable trend towards electrification.
For further insights into the impact of Chinese EVs on global markets and more on BYD’s strategies, visit Bloomberg.