China’s stand up the worldwide automotive ranks has seen the nation develop into the biggest vehicle exporter, however it’s not only in volume where the country’s industry leads.
As reported by Reuters, BYD CEO Wang Chuanfu said in an interview with China’s national TV broadcaster that Chinese electric vehicles (EVs) are three to 5 years ahead of the competition.
In response to the report, Mr Wang was speaking in regards to the edge Chinese EVs have in product, technology and provide chain in comparison with overseas rivals.
While Mr Wang’s praise for China’s EV industry is unsurprising, global Ford CEO Jim Farley has previously aired his admiration for Chinese carmakers.
“For an organization like Ford, [the rise of China’s auto industry] has been something we’ve been anticipating some time, but I’ve had two trips to China the last two years that were literally epiphanies,” Mr Farley said on the Fully Charged Show last 12 months.
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“The last one was in regards to the Xiaomi product. Within the West, our mobile phone corporations don’t have automobile corporations. But in China, each Huawei and Xiaomi, the 2 biggest mobile phone corporations, are inside every vehicle that’s made.
“In actual fact, Xiaomi – you might argue [it’s] the Apple of China – they make the entire automobile, and now it’s certainly one of the best-selling cars in China.
“Everyone’s talking in regards to the [cancelled] Apple automobile, however the Xiaomi automobile now exists, it’s unbelievable they usually’re sold out for six months – that’s an industry juggernaut and a consumer brand that is way stronger than automobile corporations.”
Mr Farley had previously visited Ford’s Chinese joint-venture partner Changan in early 2023 where he took a ride in certainly one of the corporate’s electric SUVs, telling board member John Thorton the rise of Chinese EVs “is an existential threat”, referencing specifically the technology available within the cars in addition to the worth point they might be offered at.
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Denza Z9 GT
The speed of growth in China’s automotive industry hasn’t been without obstacles, because the nation’s EVs currently face tariffs in Europe and the US, each introduced in a bid to guard local industry.
In Europe, an investigation by policymakers found Chinese EV makers were being subsidised by the state, with the European Commission responding by placing tariffs of as much as 45.3 per cent – including existing import taxes on incoming vehicles.
Vehicles from SAIC Motor – the parent company of MG and Maxus/LDV – face a tariff of 35.3 per cent, while vehicles from Geely – which owns Volvo, Polestar and Lotus, amongst others – face an 18.8 per cent tariff and BYD vehicles a 17 per cent one.
EV giant Tesla has cooperated with the European Commission’s investigations into Chinese brands receiving assistance from their home government, with its tariff rate the bottom of any manufacturer at 7.8 per cent.
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Yangwang U9
It’s a tougher situation within the US though, with the Biden Administration last 12 months raising the tariff on certain Chinese imports including EVs from 25 to 100 per cent, not including the present 2.5 per cent duty tax on all vehicles imported to the US.
That is despite only a handful of Chinese-made EVs being sold within the US.
It also increased the tariffs on lithium-ion EV batteries and related battery parts from 7.5 to 25 per cent.
This Article First Appeared At www.carexpert.com.au
