Two days ago I wrote about an article that said that Chinese electric vehicles are superior to the ones made in the US though they have not penetrated the market here as yet. Just today, an article appeared that seemed to reinforce the idea.
A tiny, low-priced electric car called the Seagull has American automakers and politicians trembling.
The car, launched last year by Chinese automaker BYD, sells for around $12,000 in China, but drives well and is put together with craftsmanship that rivals U.S.-made electric vehicles that cost three times as much. A shorter-range version costs under $10,000.
Tariffs on imported Chinese vehicles probably will keep the Seagull away from America’s shores for now, and it likely would sell for more than 12 grand if imported.
But the rapid emergence of low-priced EVs from China could shake up the global auto industry in ways not seen since Japanese makers exploded on the scene during the oil crises of the 1970s. BYD, which stands for “Build Your Dreams,” could be a nightmare for the U.S. auto industry.
“Any car company that’s not paying attention to them as a competitor is going to be lost when they hit their market,” said Sam Fiorani, a vice president at AutoForecast Solutions near Philadelphia. “BYD’s entry into the U.S. market isn’t an if. It’s a when.”
Even with the 100% tariff on Chinese EVs proposed by Biden, the Chinese cars may still be competitive.
The situation is starkly similar to what happened with cars in the 1960s. While the US continued to make huge gas guzzlers, the Japanese automakers focused on small, fuel-efficient ones and once their quality improved, they dominated the market.
This time around, US automakers seem to be going for large EVs (like the Tesla Cybertruck monstrosity) that can attain high speeds and go off-road, while the Chinese makers seem to be going for smaller vehicles that are cheaper with smaller batteries that are quick charging and thus ideal for city use. It is not hard to guess which market is larger.