As of: March 2, 2024, 3:56 p.m
By: Patrick Freiwah
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BYD at the Geneva Motor Show: European manager Michael Shu presents an SUV from the luxury brand Yangwang.
© Fabrice COFFRINI / AFP
How much should the competition fear car manufacturers from China like BYD?
A manager comments on western markets such as the USA and Germany.
Munich - This past week was of great importance for BYD.
The Chinese car company has sent its own freighter with thousands of new cars to Germany and other European countries for the first time.
The “BYD Explorer No.1” was sent on its maiden voyage from the Middle Kingdom and also stopped in Bremerhaven.
According to the information, 3,000 electric cars were unloaded and were imported into different countries.
BYD and the advantage due to low production costs
BYD is the largest electric car manufacturer in the world after replacing Tesla at the top in 2023.
What worries the local competition: The car manufacturer from China produces at lower costs at home, which could bring massive advantages over the competition from Europe, but also the USA.
The success has long placed Chinese manufacturers like BYD in the political crosshairs of Western governments.
There are fears that China has created an almost unbeatable electric car industry and that local car companies such as Volkswagen, Stellantis and Co. are not up to it.
The propagated free market is reaching its limits.
The EU is making efforts to scrutinize Chinese car manufacturers with regard to irregular subsidies and to impose punitive tariffs.
Because that is the reason why the models are offered cheaper than the brands of the international competition.
BYD is currently showing that Chinese car manufacturers can offer e-mobility at surprisingly affordable prices with another remarkable innovation:
BYD manager explains model strategy and problems in the USA
According to its own information, BYD does not want to make a name for itself as a low-cost provider in markets like Germany and wants to stand out with cheaper offers.
BYD's Americas boss commented on what the company actually has in mind in an interview with
Yahoo Finance
: “BYD doesn't just offer an affordable price.
We also offer the latest innovative technology,” explains Stella Li, explaining that in addition to technical expertise, they also want to impress customers with a “stylish, very modern design.”
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However, the group still does not want to offer its vehicles on the US market due to the economic and political tensions.
The BYD manager explains why they are forgoing it despite the huge sales potential: “Politics make it complicated.
The charging infrastructure is complicated.
And then it’s confusing for the consumer.”
Li says there is “too much confusing noise and talk from different political spheres” in the United States.
It also emerged that the USA was planning to soften its electric car strategy.
BYD a danger outside of China?
“...then you will die”
In the Middle Kingdom the message is “strong” and the mobility of the future is geared more towards electric.
“If you don't invest in an electric car, you're out and you're going to die,” Li explains the difference why e-mobility is booming in China and not in the USA.
Why US car manufacturers and politicians are currently worried: BYD is planning to build a production facility in Mexico from where it will serve the Latin American market.
The fact that the US market could possibly also be served from there is raising alarm bells in the auto industry: The “Alliance for American Manufacturing” is warning of the “extinction” of US car manufacturers due to Chinese competition.
BYD official Li criticizes this attitude and points out that US manufacturers like Tesla would also benefit in China.
Germany's largest car company also recently achieved success in the People's Republic and overtook BYD.
“Because we are an open market and welcome everyone to have free competition.”
However, the American market is now protectionist and that makes it difficult for Chinese car manufacturers.
BYD and the competition: “Too much afraid of Chinese competition”
Stella Li appeals to Western companies: “I think they are overreacting a bit when it comes to electric cars – a little too afraid of Chinese competition.
But it's a kind of game.
They have to participate, otherwise they will be behind,” said the BYD manager at
Yahoo Finance
.
The fact that BYD is not only launching electric cars in Europe was shown by its appearance at the Geneva Motor Show: In addition to electric cars, the world's largest electric car manufacturer also presented a hybrid SUV at the trade fair, which will be offered in selected markets.
(PF)