Home Automotive China’s BYD Doesn’t Plan to Enter the US Market, At Least Not Yet

China’s BYD Doesn’t Plan to Enter the US Market, At Least Not Yet

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China’s BYD Doesn’t Plan to Enter the US Market, At Least Not Yet


BYD

Alarm bells are sounding throughout the U.S. automotive industry, as Chinese carmakers look to establish factories in Mexico. They could avoid U.S. import tariffs. But they can deescalate their DEFCON statuses, as an executive of China’s top contender, BYD, has said the company isn’t planning to enter the U.S. market. (Or, at least not Then, there are those who say that.)

BYD is a global player that has risen to the top in the past few years. It will surpass Tesla as the leader of EV sales by the year 2023. Most of BYD’s sales remain domestic to China though, but it’s looking to expand rapidly into export markets like Australia, Brazil, and Europe. Other Chinese carmakers also want to build factories in Mexico to avoid U.S. import tariffs and to have access to cheap labor. But those aren’t why BYD is digging a foothold in Mexico, according to its executive vice president Stella Li.

BYD Song Plus
2024 BYD song plus. BYD

“We’re not planning to come to the U.S.,” Li told Yahoo! Yahoo!. “It’s an interesting market, but it is very complicated.”
“We’re not even considering any northern state [in Mexico]. We target the local market. That is the BYD strategy.”

The mere threat of the Chinese auto industry on the U.S.’s doorstep has the White House considering additional red tape on top of existing import tariffs, which Congress has discussed increasing further. A proposal reportedly would restrict the origins for electronics used in cars with connected technology due to privacy concerns.

A BYD SUV
BYD SUVs are available in a range of sizes. BYD

The auto industry at large is worried by China’s rise, which Stellantis CEO Carlos Tavares likened to those of Japan’s and Korea’s decades ago. Tesla CEO Elon Musk openly worries Chinese carmakers could “demolish” the western auto industry, while the Alliance for American Manufacturing described China as an “existential threat.” Some automakers are taking matters into their own hands, such as Ford, which is fast-tracking a cheap EV to undercut the competition.

“I think they are [overreacting] a little bit,” Li reportedly said. “A little bit too scared about Chinese competition. I never believe that trade protection will help any company.”
“The Chinese market is the most competitive market. Why are you the winner of the most competitive market? [can’t you win] Other [countries]?”

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