Chinese EV Manufacturer Puts Pressure on US
China’s BYD is the best selling electric vehicle manufacturer in the world, beating out Tesla with one of the cheapest electric vehicles on the market. Now, they’re moving into Mexico - and it's scaring American automakers and the American government.
The BYD Seagull - known as the Mini Dolphin in Latin America - manages to market itself in China for the equivalent of 10,000 US Dollars, which is significantly cheaper than the average EV price around the world.
It’s comparable to a smaller version of the Chevrolet Bolt in terms of its design and physical capabilities. What’s especially notable about its design, though, is that some units can travel up to 250 miles on a single charge.
BYD already sells the most EVs in the world, outclassing Tesla without the American market. So, there’s a big worry that their dominance will come to America.
If the car were to come to America, it’d still be much cheaper than the national average for EV prices even after taking into account the current 27.5 per cent tariff rate put on Chinese-built EVs.
With that said, the already high tariff might be increased as American government officials are doing everything they can to keep Chinese EVs out of the country.
Former President Donald Trump said that if he wins the upcoming federal election in November, he’ll impose a 100 per cent tariff tax on Chinese-owned EVs built in Mexico.
But the car - and production of it - is already coming to North America. BYD is currently expanding their car production to a bunch of different countries around the world. One nation that they’re eyeing up to put a plant in is none other than the US’s southern neighbour Mexico.
The car is already coming to the Mexican market with a 20,000 US dollar price tag. Even with the extra 10,000 dollar cost compared to its price in China, it’s still much more affordable than the average EV in the country.
But the government isn’t the only one fearing the Seagull; the American automotive industry is also weary of the car coming to the States.
The big three - General Motors, Ford and Chrysler - have been losing foothold in their own market to other East Asian car manufacturers like Japan’s Toyota, Nissan and Honda and South Korea’s Hyundai and Kia.
In 1984, the big three made up for 75 per cent of car sales in the United States. Today, they only make up for 40 per cent of them.
As far as BYD’s growth goes, Warren Buffett’s investment company Berkshire Hathaway’s investment in the Chinese automaker really helped it get off the ground.
In 2008, the company bought 225 million BYD shares for 232 million dollars, making up for 9.9 per cent of the company’s overall value. In 2023, they sold roughly 60 per cent of them.