BYD Chairman Accuses Foreign Politicians of Fearing China's EV Dominance

BYD Chairman and founder Wang Chuanfu stated that foreign politicians are "afraid" of Chinese electric automobiles.

In his remarks at a Friday industry summit in Chongqing, China, Wang urged the electric vehicle (EV) sector to welcome more competition to speed the auto industry's transition to electric vehicles, according to a report from Benzinga. Wang reportedly remarked that there are several politicians outside China "who are worried" about EV companies in the country, reflecting the robust China car industry.

He added that if Chinese EV firms "are not strong enough," the foreign politicians "will not be afraid of you."

BYD Continues Strong Sales

China's highly competitive EV sector has seen a pricing war in recent months, with manufacturers offering substantial discounts and newer, cheaper models to attract customers.

BYD sold roughly 1.27 million passenger vehicles worldwide by May, up 27.1% from last year, including 580,974 BEVs and 685,960 PHEVs.

The Chinese EV maker surpassed Tesla as the world's top electric vehicle seller last year. Tesla reclaimed its advantage in the first quarter, but the two EV makers remain competitive, according to CNN.

In May, U.S. President Joe Biden tripled tariffs on Chinese electric vehicles to 100%, shutting down one of the world's major passenger automobile marketplaces. Next week, the EU may slap more import taxes on the industry.

BYD To Open a Second European Facility

In a separate update, a BYD official said that the Chinese firm will develop a second European facility and launch hybrid cars when the EV industry slows.

Stella Li, VP for Europe and the Americas, rejected fears about a European Union study that may lead to Chinese EV taxes. At the Monaco's Top Marques auto show, Li remarked that one proof of BYD's superb performance is "When your competition worries about you", per a report from AFP published on MSN.

Hungary will host BYD's first European facility by the end of next year. Li said the business is still looking for a second plant location and will invest when it is ready.

As EV sales drop in numerous EU nations, BYD will release plug in hybrid electric vehicles (PHEV) like the Seal U DM-i, shown in Monaco. These cars feature combustion engines and rechargeable midsize electric batteries.

Consumers consider PHEVs "the first baby step to enjoying the technology," Li added. BYD sold 1.5 million PHEVs last year, half its global sales. PHEVs are hefty and use a lot of gas, which emits dangerous pollutants when not charged, detractors say.

Governments throughout the European Union are extending incentives to Chinese automakers hoping to locate facilities in Europe, while the EU probes China's car subsidies and considers import levies, per The Japan Times.

According to Bain & Company partner Gianluca Di Loreto, many Chinese EV corporations want to establish European operations to strengthen their brands and save on shipping and taxes.

The EU's tariff decision is expected this week. Import tariffs may help European automakers compete with China, but also encourage Chinese manufacturers to invest in Europe.

Consulting company AlixPartners expects Chinese-brand automobile sales to reach 7% of the European market by 2028, up from 4% last year.

Last year, BYD announced the first European industrial investment by a Chinese manufacturer. Hungary will manufacture 500,000 automobiles in 2023.

Moreover, Budapest is reportedly talking with Great Wall Motor about its first European facility. To entice international investment, the country is offering tax reductions, job creation funds, and reduced rules in designated zones.