 "‘Our common enemy is…’: China’s BYD to work with Musk’s Tesla to combat petrol cars")
China’s BYD Auto, the country’s leading electric car maker, on Tuesday announced that it will collaborate with its rival Tesla to manufacture more EVs and combat petrol cars.
In an interview with the Financial Times, BYD’s executive vice president Stella Li said, “Our common enemy is the internal combustion engine car. We need to work together . . . to make the industry change.” She also claimed that China is “more open” to foreign business than the West.
Despite her remarks, the two automakers are competing for the title of the world’s largest EV manufacturer. BYD is striving for rapid sales growth in Europe by expanding its lineup of advanced EVs, surpassing the offerings of its US rival. Meanwhile, Tesla has experienced a decline in European sales, partly due to Elon Musk’s growing political activism.
‘Xi govt is more open’
Li said that the company wants to provide key resources and technologies to major EV players around the world despite China’s simmering tensions with Brussels and Washington.
She said, “[The] Chinese government is more open so maybe there is a lot of wrong perception here.”
Calling the Chinese car market “the homeland for innovation”, the BYD VP urged foreign companies to invest in the country. The government will support you and they’ll work with you to allow any technology to be realised,” she added.
BYD makes inroads with Europe
The company has been rapidly expanding into European markets, with plans to establish local production at its plants in Hungary and Turkey to counter the EU’s higher tariffs on Chinese-made EV imports. Additionally, BYD intends to raise up to $5.2 billion through a share sale in Hong Kong to support its global expansion, according to a source familiar with the deal.
Li said that the Chinese government has been at the forefront of opening the doors of Chinese markets to foreign investors as well as pushing Chinese autos into foreign markets. “For every investment we have overseas, the [Chinese] government is supporting [us] very much,” she added.
Impact Shorts
More ShortsBYD will now offer European consumers alternatives to EVs, including the Seal U plug-in hybrid, as EV sales decline in key European markets. Since hybrids are not affected by the EU’s anti-subsidy tariffs, they present a strategic option. Additionally, BYD plans to introduce its Denza premium brand later this year.
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