BYD electric cars seek to attract buyers from Europe economy
The Chinese company BYD, which is the best-selling car brand in China, is preparing to enter the German market with electric cars at prices ranging between 25,000 and 30,000 euros ($27,000-$33,000), according to Stella Li, Vice President of… The company’s CEO, in an interview with a German newspaper reported by Bloomberg.
She spoke to me about the company’s plans, saying: “We are still working on our plan,” expecting that it will take “less than six months” to convince German buyers to trust BYD cars.
She pointed out that there is a need to give German consumers enough time to build confidence in the Chinese brand, adding: “We need to give them some time to gain confidence in our cars.”
Challenges in Europe
These statements came after European Union countries voted last week in favor of imposing customs tariffs of up to 45% on electric cars imported from China. This decision came as a response to the speed and development shown by Chinese electric car makers, which poses a threat to European car makers on their home soil, according to Bloomberg.
It is expected that talks between the European Union and China will continue to find alternatives to tariffs, such as controlling prices and export volumes. Lee said in this regard: “I do not think that the European Union will reverse its decisions,” noting that “lobby groups in the automobile industry are very strong in Europe.”
BYD globally
To overcome the challenges it faces in global markets, BYD is investing billions of dollars in building new production facilities in Europe, Asia and South America to meet the needs of local markets and avoid trade barriers facing Chinese electric vehicles.
The company already has an operating factory in Thailand, in addition to production facilities under construction in Hungary, Brazil and Turkey.
European criticism
European companies such as Volkswagen, BMW and Renault complained about the contradictory policies of decision makers in the European Union.
Bloomberg says that these companies consider that the European Union sets deadlines for getting rid of cars that run on traditional fuel and demands a reduction in fleet emissions, but at the same time it does not provide sufficient support for charging costs or the infrastructure necessary for electric cars.
She told me that European automakers are “uncompetitive” because they lack clarity on electric vehicle policies and avoid real competition. “Global markets have become very saturated and competitive, and this has made Chinese companies more competitive,” she added.
She concluded her speech by saying: “All manufacturers around the world must participate in this competition. Whoever hesitates and backs down will lose in the end.”
