China’s BYD is the only carmaker to sponsor Europe’s premier international tournament. Auto Trader said the advertising campaign was responsible for a 69% week-on-week increase in views of BYD models on its website, during the first weekend of the tournament from Friday to Sunday.
The EU highlighted alleged unfair subsidies for the trio of BYD, Geely and the state-owned SAIC Motor. If confirmed after negotiations with
China, BYD will face tariffs of 17.4%, in an effort to protect the European car industry and its 3 million workers. BYD faces a lower tariff rate than other Chinese carmakers, such as Geely’s 20% or SAIC’s 38.1%. It is thought this was partly because of its cooperation with the EU, but also because the analysis suggested it benefited less from subsidies than rivals. That would be a surprise, as previous estimates of Chinese subsidies by the Kiel Institute for the World Economy suggested BYD “receives particularly high subsidies”, including €2bn (£1.7bn) in 2022 alone, according to public filings. BYD has also benefited heavily from China’s generous electric car grants.
Matthias Schmidt, a Berlin-based electric vehicle (EV) analyst, said BYD sold fewer than 10,000 cars in western Europe in the first four months of 2024. However, he added that BYD may have started with “ambitious pricing, presumably designed to soak up any rise in European tariff increases”. The cheapest version of a Dolphin will start at £25,490, less than a VW ID.3.. Yet a version of the Dolphin sells for 99,800 yuan (£10,700) in China. Even accounting for extra costs because of stricter UK and European regulation, that implies a lot of leeway to absorb tariffs. A
planned car factory in Hungary could export to the EU tariff-free, and an executive last week said BYD was committed to building a second.
BYD’s roots as a battery maker appear to have given it an important manufacturing advantage. Rhodium’s Sebastian said vertical integration – owning the supply chain rather than buying parts from elsewhere – had given it “a lot of control over costs”. Tu Le, the managing director of Sino Auto Insights, a consultancy, highlighted its ownership of computer chip factories as well as its batteries. And “they have scale”, he added, predicting 4m car sales this year – about half pure electric and half hybrid. “There is no one close to building as many clean energy vehicles as BYD.” And where other carmakers have focused on long-range batteries containing
expensive nickel, manganese and cobalt (NMC), BYD has pioneered the use of the cheaper lithium iron phosphate (LFP) chemistry.
The Graniadu