Automotive News Europe — 2024-10-12
Automotive Industry
BYD Executive Vice President Stella Li criticized EU tariffs on China-made EVs as a loss for the consumer.
BYD, China's best-selling car brand, may initially offer electric vehicles in Germany for between €25,000 ($27,340) and €30,000, Executive Vice President Stella Li said in a newspaper interview.
She criticized European Union tariffs on China-made electric vehicles starting next month, which Germany had opposed, as a loss for the consumer, adding that BYD would start producing cars in Hungary by the end of 2025.
"I think we will become an important market participant here in Europe," Li told the Frankfurter Allgemeine Sonntagszeitung ahead of the Paris auto show, which starts on 14 October 2024.
German sales teams were being expanded to work on winning over consumer trust as the company's strategy was to establish its presence for the long-term, Li said.
BYD has taken over its distributor in Germany, Hedin Electric Mobility, after the automaker became frustrated with the company's slow sales in Europe's biggest market.
Li declined to comment on sales targets. "We are still working on our plan," she told the newspaper.
Li predicted it will take "less than six months" to persuade potential German buyers. "We need to give them some time to gain trust in BYD," she said.
European Union countries decided in a divisive vote last week to impose tariffs of as much as 45% on electric vehicles from China, a response to the speed and sophistication of Chinese EV makers that threatens European manufacturers on their home turf.
The EU and China are expected to continue talks to find an alternative to tariffs, possibly on a way to control prices and export volumes instead.
"I don't think the EU will make any more compromises," Li said. "The automotive industry lobby is really strong."
BYD is investing billions of dollars in production facilities in Europe, Asia and South America to serve local markets and skirt trade barriers being thrown up against Chinese electric vehicles.
The company already has a factory up and running in Thailand, and more manufacturing capacity being built in Hungary, Brazil and Turkey.
Volkswagen, BMW, Renault and other automakers have complained about mixed signals by EU policymakers, saying they set deadlines to phase out combustion-engine cars and reduce fleet emission levels but then removed subsidies and did little to aid on charging costs and infrastructure.
Li said in her opinion European automakers were not competitive because they lacked certainty of a consistent EV policy and were trying to shut out healthy competition.
A saturated, highly competitive market has made Chinese car manufacturers "very competitive," she said.
"All manufacturers in the world should take part in this competition," Li said. "Those who hesitate and back down will lose."