BYD not afraid of Trump tariff: 'It will ultimately harm consumers'
Automaker's goal is to lead with cutting-edge technology, including 'blade' batteries
Chinese EV powerhouse BYD remains unfazed by US tariff threats under President-elect Donald Trump.
Trump’s tariff policies ultimately harm consumers, not us.
In a recent interview by Korean media, Liu Xueliang, BYD’s General Manager for the Asia Pacific Auto Sales division, confidently declared: “Trump’s tariff policies ultimately harm consumers, not us. BYD will continue delivering quality products at fair prices, tailored to each country’s tariff guidelines.”
No cut-price EVs
Far from simply offering affordability, BYD aims to redefine luxury.
“BYD’s four sub-brands cater to all segments, from mass-market vehicles to high-end luxury cars,” Liu said.
Despite hopes for budget-friendly EVs, Liu tempered expectations. BYD’s Dolphin hatchback starts at 99,800 yuan ($13,800), while the Atto 3 SUV and Seal sedan begin at 119,800 yuan and 179,800 yuan, respectively.
Customers will find value not in rock-bottom pricing but in cutting-edge technology – including BYD’s innovative “blade battery”, which has a record for safety and performance.
Wang Chuanfu, the chemical engineer CEO of BYD, knows his battery chemistry. He an army of engineers and scientists continuously iterating the best combination of elements and improving techniques to boost range and safety of their powerpacks.
With its vertically integrated model and given the intense competition within China itself, BYD isn’t just competing but also shaping the global EV landscape.
BYD’s goal: To remain a leader in EV innovation, and not to hedge against tariffs.
The company, partly owned by US investor Warren Buffett's Berkshire Hathaway, which employs about 900,000 people, is unstoppable at offering vehicles that balance technology, safety, and affordability across markets.
BYD’s confidence signals a bold new chapter for the company as it expands its reach and reshapes perceptions of electric luxury worldwide.
Vertical integration
In BYD’s Shenzhen EV plant, a chassis glides down the conveyor belt every 58 seconds, paired seamlessly with a “blade” battery pack.
This level of efficiency may seem typical for an auto factory, but BYD holds a unique advantage: it develops both the vehicle and its batteries in-house.
As a vertically integrated company, BYD sources nearly all of its own parts, including the battery (its most expensive component), enabling it to offer “high-tech vehicles at reasonable prices.”
Automation, precision
While the battery assembly is fully automated, car assembly is only 25 per cent automated, with skilled workers ensuring precision. This balance contributes to a remarkably low defect rate.
BYD celebrated its 10 millionth EV in November. The company’s journey began in 2008 with the F3DM, the world’s first plug-in hybrid, backed by a $230 million investment from Warren Buffett.
In 2022, it surpassed Tesla as the world’s top EV seller.
Leaked email
Citing a leaked email dated November 26 from BYD, Chinese digital news outlet thepaper.cn reported on Wednesday that BYD had asked one unidentified supplier to reduce its prices by 10 per cent from January 1, 2024.
Screenshots of the email were widely shared on social media, but cannot be immediately verified, as per Reuters.
As the autowar intensifies, BYD’s vertically integrated manufacturing model, production volume and R&D power, could mean that it can negotiate bulk discounts from key suppliers, bringing per-unit cost down for customers.
A brutal price war in the world’s largest auto market is set to escalate, and could make tariffs irrelevant, leaving walled economies in the dust amid a clean energy transition.
Speaking via video at a Paris tech conference in May, Musk clarified, “Neither Tesla nor I asked for these tariffs. Things that inhibit freedom of exchange or distort the market are not good.”
This comes just days after President Joe Biden’s administration imposed a 100% tariff on EV imports from China, citing unfair trade practices and job protection.
Tesla thrives in China without relying on tariffs or special support, reiterating his belief in open markets: “Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favour of no tariffs.”