BYD, China’s bestselling car brand, may initially offer electric vehicles in Germany for between EUR25,000 ($35,722.50) and EUR30,000, executive vice president Stella Li said in a newspaper interview.
“We are still working on our plan,” Li told Frankfurter Allgemeine Sonntagszeitung. She predicted it’ll take “less than six months” to persuade potential German buyers. “We need to give them some time to gain trust in BYD,” Li said.
European Union countries decided in a divisive vote last week to impose tariffs of as much as 45% on electric vehicles from China, a response to the speed and sophistication of Chinese EV makers that threatens European manufacturers on their home turf.
The EU and China are expected to continue talks to find an alternative to tariffs, possibly on a way to control prices and export volumes instead.
“I don’t think the EU will make any more compromises,” Li told FAZ. “The automotive industry lobby is really strong.”
BYD is investing billions of dollars in production facilities in Europe, Asia and South America to serve local markets and skirt trade barriers being thrown up against Chinese electric vehicles. The company already has a factory up and running in Thailand, and more manufacturing capacity being built in Hungary, Brazil and Turkey.
See also: Leaked BYD letter signals China EV price war is set to intensify
Volkswagen, BMW Renault and other carmakers have complained about mixed signals by EU policymakers, saying they set deadlines to phase out combustion-engine cars and reduce fleet emission levels but then removed subsidies and did little to aid on charging costs and infrastructure.
Li said European carmakers aren’t competitive because they lack the certainty of a consistent EV policy and are avoiding competition.
A saturated, highly competitive market has made Chinese car manufacturers “very competitive”, she said.
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“All manufacturers in the world should take part in this competition,” Li said. “Those who hesitate and back down will lose.”
Table: Bloomberg
