US, German-Japanese car bosses are afraid, Chinese mini cars bring terror
Photo: BYD Seagull. (Doc. BYD)
- The presence of 'mini' sized electric cars has had a big impact on the global automotive industry. The shock is mainly due to its low price and its potential to disrupt domestic automotive industries around the world.
One of the 'mini' electric cars that is currently most popular is the Seagull, a small electric car manufactured by BYD with a price of US$ 10,000. The presence of this car has reportedly provided financial benefits for BYD and made the influence of the Chinese manufacturer stronger.
The triumphant phenomenon of the 'mini' electric car has made executives and politicians from Detroit, Texas, Germany and Japan nervous.
Moreover, the electric car manufacturer from the United States is considered to have failed to develop the potential of this type of electric car. The distribution of Chinese cars has also spread to Europe, Latin America and other countries.
"Seagull could be a clear 'call' for the rest of the automotive industry," said Terry Woychowski, a former official at General Motors, quoted from CNBC International, Saturday (23/3/2024).
Although the Seagull is not yet sold in the US, BYD is developing its vehicles globally, and some believe it is only a matter of time before more Chinese-made vehicles arrive in the US.
World car manufacturers are worried that the presence of Chinese manufacturers such as BYD, which is supported by US billionaire Warren Buffet, will flood their market. It is feared that this will reduce domestic production levels and prices, thereby harming the domestic automotive industry.
"The introduction of low-priced Chinese cars backed by Chinese government power and funding into the American market could be an extinction event for the US auto sector," the Alliance for American Manufacturing, a US manufacturing advocacy group, said in a statement. a report last month.
BYD sold 1.57 million battery electric vehicles last year, up from just 130,970 electric vehicles in 2020. That sales growth is enough to surpass Tesla to become the world's largest electric vehicle manufacturer by the end of 2023.
Tesla CEO Elon Musk said the rise of BYD and Chinese car manufacturers would destroy global competition. He touched on the issue of implementing trade barriers.