BYD, Chinese electric car brand that 'threatens' to extinguish the US automotive industry

The United States Government will soon take some new measures to exclude electric vehicles of its market, this due to concerns that its entry will cause unfair competition and even jeopardize the American automotive industry.

President Joe Biden's administration and the US Congress are considering a variety of legal mechanisms that could be applied to avoid what they consider “an extinction level event” for the US auto industry, according to an analysis by David A. Glantz, a specialist. in international trade from the Baker Institute of Public Policy.

The arrival of BYD to Mexicowhich has among its plans to build an assembly plant in this country neighboring the United States, is the main threat, according to the analysis.

BYD has stated that its production in Mexico will be destined for that market and exports will be made to countries with free trade agreements. But analysts have highlighted that the electric car company's real objective is the US market.

What do we know about BYD, the 'Chinese giant'?

BYD is a Chinese company that manufactures automotive products, including electric cars and batteries.

The rise of BYD, which began as a battery maker, came after years of research into electric vehicles and plug-in hybrid technology. For most of the last 10 years, its R&D spending exceeded its profits.

It posted 1.6 billion yuan in net income in 2019, but invested more than 8 billion yuan in R&D, founder Wang Chuanfu said at an event in 2023. Government support helped sustain BYD during its early years, but China's national electric vehicle subsidies have been phased out. in 2022.

BYD has been working on its flagship DM-i hybrid platform for almost 20 years. The fourth generation of technology, which allows a vehicle runs on electric batteries until they run outmoment in which a gasoline engine is activatedwhich helps overcome anxiety about range, became a huge hit after its introduction in 2021.

BYD's DM-i platform has a sophisticated transmission: it incorporates two electric motors and saves fuel.

BYD sold 3 million electric and hybrid vehicles in 2023, after it stopped making conventional gasoline cars the previous year.

How much does a BYD car cost?

This April 3, it was reported that BYD plans to launch its first electrified pickup truck for the global market later this year. Yes ok BYD vehicles are not available in the United Statesthe automobile manufacturer has been entering markets in Asia, Australia and South Americawhere pickup trucks are popular.

The truck will join BYD's wide range of electric vehicles, from its popular Seagull hatchback, which sells for 69,800 yuan, or less than $10,000, to its Yangwang supercar, which sells for 1.68 million yuan ( 233 thousand dollars).

That range, and an aggressive wave of price cuts, have helped BYD dominate China's electric vehicle market, the world's largest, with a 33 percent market share last year.

When does BYD arrive in Mexico?

BYD made its official launch in Mexico with the Dolphin model, a subcompact car from the Ocean line that can charge its battery to 80 percent in 30 minutes and that sells for around 535 thousand pesos.

The Asian giant BYD is already studying the construction of a plant in Mexico to produce its units, since the country is considered a key market for its national expansion.

In an interview in September of last year, the president of BYD Americas, Stella Li, said that the company's plan is to deliver some 30,000 units sold to Mexico by 2024.

In March this year, BYD sent a delegation to Jalisco to analyze the construction of its plant there.

Specific plans have not yet been announced, however, some locations have already been considered, according to the newspaper Nikkei. Some options are New Lionwhere there are already KIA facilities and it is planned to be the headquarters of the Tesla gigafactory; The Bajío, where the BMW plant in San Luis Potosí is located; and the Yucatán Peninsula or the Mexican southeast.

With information from Bloomberg and Jassiel Valdelamar.