BYD Seeks Collaboration with Tesla to Transition the Industry to Electric Vehicles | Carscoops

      BYD's global expansion is showing no signs of slowing, particularly in Europe.

      

      15 hours ago

      by Brad Anderson

      Stella Li, an executive at BYD, referred to China as “the homeland for innovation” within the automotive sector.

      The company’s sales surged by over 40% worldwide last year, thanks to its electric and plug-in hybrid vehicles.

      This growth is even more remarkable considering BYD does not sell any vehicles in the United States.

      In the last five years, BYD, the Chinese electric vehicle powerhouse, has transformed from an underdog into a formidable automotive force. It has made established car brands appear to be scrambling to keep pace. While Tesla may be its primary competitor, BYD's executive vice-president, Stella Li, believes there is room for collaboration, particularly in the effort to replace internal combustion engine vehicles.

      “Our common adversary is the internal combustion engine vehicle. We need to collaborate . . . to facilitate change in the industry,” she shared with the Financial Times during an interview.

      Read: BYD Targets Ford F-150 with a Full-Size Pickup

      However, Li isn’t suggesting a partnership with Tesla in developing a new car. Instead, she envisions significant electric vehicle manufacturers working collectively to advance the entire industry.

      During the interview, she also referred to the Chinese automotive market as “the homeland for innovation,” pointing out that the government is supportive of foreign companies aiming to expand into China, even amidst escalating trade tensions with both the European Union and the United States.

      “[The] Chinese government is more open, so maybe there are many misconceptions here,” she added.

      BYD's Challenges and Political Resistance

      While BYD’s sales continue to rise, the company faces challenges. The European Union has implemented tariffs on BYD and other Chinese electric vehicle manufacturers, and is advocating for these companies to transfer intellectual property to European firms in exchange for subsidies. At the same time, the Chinese government is urging local companies to reduce investments in foreign manufacturers.

      The European Commission contends that China’s expanding foothold in the EU market is largely supported by various subsidies throughout the production chain, including discounted lithium and battery supplies from state-owned enterprises, tax incentives, favorable financing from state-controlled banks, and access to inexpensive land for factory construction.

      Despite these hurdles, BYD is moving forward with its manufacturing facilities in Hungary and Turkey, which will help it avoid the EU’s tariffs.

      Li stated that she remains focused on product quality rather than getting mired in political issues, asserting that consumers will always opt for superior products. She is also unconcerned about the potential exclusion from the US market. Clearly, BYD is self-assured in its ongoing growth and anticipates eventually surpassing internal combustion engines.