BYD – which adopts the English slogan “Build Your Dreams” – is the most prominent EV manufacturer in China, the world’s largest automotive market.
The initial rapid sales growth of BYD and its industry peers in their home market was facilitated in part by generous subsidies from Beijing.
But the European Union has said that the extensive state support enjoyed by Chinese firms has led to unfair competition, with an investigation by the bloc finding that Beijing’s subsidies were undercutting local competitors.
The EU announced Tuesday that it would levy extra tariffs of up to 35.3 per cent on Chinese EVs, a move described by trade chief Valdis Dombrovskis as “standing up for fair market practices and for the European industrial base”.
INTENSIFYING BATTLE
Beijing slammed the measures on Wednesday, saying it had lodged a complaint with the World Trade Organization and vowing to “take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies”.
Earlier this year, the United States and Canada raised customs duties on Chinese EVs to 100 per cent.
China is targeting car sales to be mainly made up of electric and hybrid models by 2035.
Hopes of achieving those ambitions were bolstered in July when such vehicles accounted for more than half of all domestic sales for the first time, according to the China Association of Automobile Manufacturers.
Originally specialising in the design and production of batteries, BYD diversified into the automotive industry in 2003.
Its latest quarterly results come as China’s crowded EV sector is locked in a cut-throat price war that is weighing on profitability as smaller firms struggle to remain competitive.
BYD said in an earnings report for the first half of this year that it had “effectively dealt with challenges brought by intensified industrial competition”.
As the fight
