China’s rise up the global automotive ranks has seen the nation become the largest vehicle exporter, but it’s not just 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 five years ahead of the competition.
According to the report, Mr Wang was speaking about the edge Chinese EVs have in product, technology and supply chain compared to 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 a company like Ford, [the rise of China’s auto industry] has been something we’ve been watching for a while, 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 year.
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Xiaomi SU7
“The last one was about the Xiaomi product. In the West, our cell phone companies don’t have car companies. But in China, both Huawei and Xiaomi, the two biggest cell phone companies, are inside of every vehicle that is made.
“In fact, Xiaomi – you could argue [it’s] the Apple of China – they make the whole car, and now it’s one of the best-selling cars in China.
“Everyone’s talking about the [cancelled] Apple car, but the Xiaomi car now exists, it’s fantastic and they’re sold out for six months – that is an industry juggernaut and a consumer brand that is much stronger than car companies.”
Mr Farley had previously visited Ford’s Chinese joint-venture partner Changan in early 2023 where he took a ride in one of the company’s electric SUVs, telling board member John Thorton the rise of Chinese EVs “is an existential threat”, referencing in particular the technology available in the cars as well as the price point they can be offered at.
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Denza Z9 GT
The rate of growth in China’s automotive industry hasn’t been without stumbling blocks, as the nation’s EVs currently face tariffs in Europe and the US, both introduced in a bid to protect 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 up to 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, among 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 lowest of any manufacturer at 7.8 per cent.
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Yangwang U9
It’s a tougher situation in the US though, with the Biden Administration last year raising the tariff on certain Chinese imports including EVs from 25 to 100 per cent, not including the existing 2.5 per cent duty tax on all vehicles imported to the US.
This is despite only a handful of Chinese-made EVs being sold in the US.
It also increased the tariffs on lithium-ion EV batteries and related battery parts from 7.5 to 25 per cent.
Australia meanwhile is far more accepting of Chinese cars and EVs in particular. Last year, seven of the 10 best-selling EVs sold locally were built in China, and Chinese brands locked out the top three spots on the sales chart.
MORE: Europe locks in tougher tariffs on Chinese EVs
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