The European electric vehicle industry is set to welcome a new inexpensive EV from China's BYD Co. next year, reportedly pressuring automakers within the continent over new competition.
The Chinese carmaker revealed last month that it will introduce the Seagull hatchback to the European market the following year. The automobile costs less than $10,000 in China and has high-end features like wireless phone charging and a revolving touch screen.
One person who is apprehensive about the new competition is Martin Sander, the head of Ford Motor Co.'s European EV unit. He notes that the company is closely examining this model and others from Chinese EV manufacturers.
BYD officials anticipate that the Seagull will sell for less than €20,000 ($21,500) on the continent, even after tariffs and adjustments to comply with European norms.
The Seagull has garnered praise for the design, technology, and build quality that BYD included at a low cost. And it is reportedly not a one-off: Michael Shu, European Managing Director, stated at a London industry gathering this month that the company intends to launch a more expensive €25,000 EV prior to the city car.
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BYD Factories in Europe
BYD will withstand any taxes imposed by the European Union that seek to obstruct its expansion because it plans to build two regional factories.
Following a meeting with automakers' CEOs, French Finance Minister Bruno Le Maire indicated that he was open to BYD setting up shop in France. This led to the announcement of the two planned facilities. Le Maire emphasized France's willingness to support industrial projects and warmly welcomed investments from BYD and the broader Chinese auto industry in the country.
Le Maire's statement accompanied Chinese President Xi Jinping's state visit to Paris, during which the official stated that the Chinese auto sector, including BYD, "are very welcome in France."
BYD's Global Expansion
Seagull by BYD will be released soon after the Chinese carmaker debuted Shark, a mid-size hybrid-electric pickup truck, in Mexico in May of this year. Reports claim that it is presently exclusive to Mexico and is the first time the world's biggest producer of electric vehicles has launched a new product outside of its home country.
Stella Li, BYD's Chief of the Americas, stated that the company decided on Mexico due to the country's rapidly increasing need for pickup trucks.
The debut comes as Mexican automakers are gaining market share and the US President Joe Biden administration is preparing to double duties on Chinese-made electric vehicle imports.
Sources estimate that Chinese brands account for 20% of EV sales in Mexico and 87% of EV sales in South America.
BYD is launching a new car outside its home market, which is unusual for a Chinese manufacturer.
This suggests that BYD, along with other Chinese manufacturers whose growth has stalled, is starting to place a greater emphasis on Mexico. Earlier this year, rumors circulated that BYD was considering building an electric car plant in Mexico.
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(Photo: Tech Times)
