BYD, the world’s second largest electric car company, recently made an important decision for Tesla. The Chinese manufacturer has indeed suspended plans to sell electric cars in the US. It is enough to give Tesla some respite in 2023.
If you are not familiar with BYD, don’t worry, you will soon get to know this Chinese manufacturer and even see its electric cars driving through the streets of France. Its three electric cars dedicated to Europe, the Han, Tang and Atto 3, visited the Paris Motor Show a few weeks ago. Then we were able to discover these electric cars.
One of BYD’s 2023 goals was to enter the US market. But not everything went as planned.
Announcement at CES…cancelled
Currently, BYD, the world’s second-largest electric car manufacturer, sells its models en masse in China. But the manufacturer realized that without exports, its growth is not optimal. Tesla’s main rival therefore wanted to release the first electric car dedicated to the North American market. To do this, BYD is targeting CES in Las Vegas in January 2023 with a big announcement.
In the end, nothing will happen. The manufacturer was not even officially present at CES. The decision was recently overturned. Two reasons were given by the manufacturer’s internal sources Reuters.
The first reason is the lack of confidence of the Biden administration in Chinese companies, as well as the prevailing anti-China sentiment in the United States. We see this especially in the case of Huawei on the electronic devices side and smartphones in particular. However, BYD had the support of a consulting firm in Detroit (the home of American automakers) with a pre-arranged list of showrooms for the area.
The environmental bonus plays against BYD
The second reason is more pragmatic. As of January 1, 2023, the American environmental bonus has been completely redesigned. To receive the $7,500 rebate on an electric vehicle, it must be assembled in the United States. At that time, it was impossible for BYD to compete with American manufacturers and especially with Tesla, which offered this discount to its customers.
However, BYD sources say that the decision to start work in the United States has not been abandoned. It was just put on hold. Then we imagine that BYD wants to build an assembly plant across the Atlantic before entering the American market. This is already the case, as the Chinese manufacturer has had a factory in California for ten years. It collects electric buses that run on the streets of Los Angeles and Long Beach.
This latest move by BYD does Tesla’s job. The world leader in electric cars is still first on the podium, but the Asian manufacturer is increasingly following. With recent Model 3 and Model Y price cuts, Tesla should maintain its lead in 2023. But that might be the case if BYD could launch an enviable (we’re thinking BYD Seal) and affordable electric cars in the US. very different.
In 2023, Elon Musk hopes to put the Tesla Model Y on the podium of the best-selling cars in the world, combining all engines. Or, to be more precise, on the first step of the podium, exactly that.
Are Chinese cars missing bonuses in Europe?
Some countries in Europe want to follow the same path as the United States with the Biden administration. Namely, reserve environmental bonuses for locally assembled electric vehicles. This is the case for France, which is considering such a measure.
And that might make sense. Recall that in August 2022, 20% of electric cars sold in Europe will be assembled in China. Of these 20%, only 18% are sold by the Chinese brand! The fault lies particularly with Tesla, which manufactures a large portion of its cars at its Gigafactory in Shanghai. And also European manufacturers who partially moved to China.
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