October 12, 2024 – In an interview with German media, Li Ke, the Executive Vice President of BYD, asserted that the intense competition in the market has rendered Chinese automakers “exceptionally competitive,” whereas European automakers, on the other hand, are averting competition.
Li Ke
Li Ke spoke to the Frankfurter Allgemeine Zeitung’s Sunday edition regarding BYD’s plans to venture into the German market. She revealed that BYD might initially introduce electric vehicles priced between €25,000 and €30,000 in Germany.
“We are still formulating the relevant plans,” stated Li Ke. She anticipated that it would take “less than six months” to convince potential German buyers to purchase BYD vehicles, “We need to give them some time to build trust in BYD.”
Last week, EU member states approved a contentious vote to impose an additional tariff of up to 35% on Chinese electric vehicles. Coupled with the existing 10% tariff, the total tariff could reach a maximum of 45%. In response, Li Ke said, “I don’t think the EU will make any further compromises. The lobbying power in the automotive industry is very strong.”
BYD is investing billions of dollars in Europe, Asia, and South America to establish production facilities to serve local markets and circumvent trade barriers against Chinese electric vehicles. The company already operates a factory in Thailand and is establishing additional production capacities in Hungary, Brazil, and Turkey.
European automakers such as Volkswagen, BMW, and Renault have complained that EU policymakers are sending mixed signals by setting deadlines for the phase-out of internal combustion engine vehicles and reducing emission levels across vehicle models, but then withdrawing subsidies and providing limited support in terms of charging costs and infrastructure.
The Necessity of Competition
Li Ke opined that European automakers lack competitiveness due to their absence of a clear and consistent electric vehicle policy and their aversion to competition.
In contrast, a saturated and fiercely competitive market has made Chinese automakers “exceptionally competitive.”
“All automakers worldwide should partake in this competition,” said Li Ke, “Those who hesitate and retreat will fail.”
