Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
Leading EV maker BYD Co Limited (OTC:BYDDF) (OTC:BYDDY) has refuted the European Union’s allegations that the success of Chinese car companies is due to state aid.
What Happened: The EU is currently investigating whether subsidies from China are enabling the country’s electric cars to undercut European models. Despite the potential for increased tariffs, BYD remains confident in its position, reported Financial Times.
The company argues that its achievements are a result of its unique technology and efficient management.
BYD’s European president, Michael Shu, said: “It's because we invested in this technology much earlier, and much more, than competitors. It's not because of the subsidy.”
Shu also downplayed the impact of tariffs, asserting that BYD is prepared to stabilize product prices in the market.
Shu also mentioned that the manufacturing subsidies received from China are “very limited.” The investigation, however, is anticipated to result in higher tariffs, a move that the Chinese ambassador to Europe has labeled as “unfair.”
Hurdles In The Way: Despite the potential challenges, BYD is pushing ahead with its expansion plans in Europe. The company, backed by Warren Buffett‘s Berkshire Hathway, has already launched three models in Europe and is looking to grow its lineup and sales in various countries.
Higher tariffs could lead BYD to increase the planned capacity of its new EV factory in Hungary, Shu added. The company expects to start producing cars at the Hungarian plant before the end of next year, despite only announcing the project in December.
Why It Matters: BYD’s rapid growth and increasing presence in Europe have been a topic of much discussion in recent times. The company, once seen as a laughing stock in the industry, has now become a formidable competitor, even in the luxury car segment. Its recent U9 super EV, unveiled last weekend, is poised to challenge the likes of Ferrari.
Despite this, BYD has made it clear that it does not view Tesla as a competitor but rather as a partner in driving the global EV market.
Read Next: Tesla Bull Gary Black Says Elon Musk Added ‘Fuel To The Fire,’ But Clarifies That Billionaire’s Comments
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.