China’s entry into EV manufacture is shaking things up. Perhaps some legacy automakers may not survive.
intense pressure
Many major global auto markets, including the US and EU, recently raised tariffs on Chinese EV imports to “protect” domestic companies.
Legacy automakers are struggling to keep up with low-cost EVs from China, like BYD’s Seagull, starting under $10,000 (69,800 yuan).
Even in overseas markets, like South America, the Seagull (known as the Dolphin Mini overseas) is among the most affordable electric options at around $20,000 (99,800 reals).
Back in September, Volkswagen-owned Audi said that it wanted to stop production on the Q8 E-Tron – an €80,000 electric SUV that barely anyone in Europe can afford – and put the factory up for sale. Meanwhile, VW has been looking for investors or other workarounds, with the company now saying that none of the 26 interested parties offered any viable solutions for the future of the plant, as reported by Automotive News Europe .
Now, the factory has become a symbol for what protestors say is the real problem: It’s not that people don’t want to drive EVs, it’s that European automakers are focusing on large SUVs that the average person can’t afford.
Hm. Legacy automaker’s version of “Let them eat cake.”?
Legacy automakers competition.
The story of BYD began in the 1990s, when founder battery scientist Wang Chuanfu thought he saw an opportunity to start a rechargeable battery company to challenge Japan’s dominance in that industry. He began by focusing on batteries for mobile phones and power tools, but in 2003 he decided to pursue cars. Wang’s battery and manufacturing innovations, cushioned by China’s EV friendly government policies and the scale of its domestic auto market, helped BYD do what Tesla, Ford, Volkswagen, and the rest of the auto industry have not been able to do — build an affordable electric car for the masses and make money doing it, Bloomberg says.
In July, Li announced a partnership with Uber. The two companies will offer financing on 100,000 BYD cars to ride-share drivers around the world, including Europe, Latin America, and Canada, even though Canada has joined the US in imposing a 100 percent tariff on Chinese-made cars. BYD insists it has no intention to enter the Canadian retail car market, but those Uber vehicles will be seen by lots of people in Canada. Think of BYD as the camel that sticks its nose under the tent and is soon inside.
In 2023, UBS did a teardown of the BYD Seal sedan, a challenger to the Tesla Model 3, and found that about 75% of the parts were made in-house, giving BYD a 25% cost advantage over American and European carmakers. That sort of vertical integration is consistent with the approach to manufacturing adopted by Tesla, and it means legacy automakers, who tend to rely more on outside suppliers, have a tough row to hoe if they want to compete with BYD or Tesla.
Here’s a challenge for readers. I have $5.00 that says BYD will be selling passenger cars and/or trucks in the US by 2030. Anyone want to take my bet?
The above is the author’s challenge not mine.
A new China competitor. A China TV manufacturer enters EV competition. I guess they have concluded making an EV is easy peasy.
So far, it looks like the real deal.
A host of Chinese brands that you’ve likely never heard of have been unveiling new EVs at this week’s Paris auto show – which has made a big comeback this year after a major lull post-COVID. Among them is a newcomer to the scene: Skywell, a brand better known for cheap electronics.
Two battery options will be available, and while detailed specs aren’t yet available, the larger pack offers a combined range of over 300 miles, which makes it a good option for longer drives.
DC fast charging should give you a 10% to 80% recharge in 20 minutes. The 204hp front-mounted motor will enable what it claims is 0-62mph time in 3.9 seconds – that’s a lot quicker than the BYD Dolphin