US car tariffs help Chinese EVs to race ahead

[usonian]

https://archive.is/6eiKT (FT)

BYD’s technological advances show where the centre of innovation now lies

THE EDITORIAL BOARD

These are tricky times to be a big carmaker — though less so if you are Chinese. President Donald Trump’s planned 25 per cent tariffs on imported vehicles and key car parts are meant to force manufacturers to relocate production to the US and create jobs. European and Asian carmakers’ shares have dropped, but so have those of US carmakers, whose costs will rise. Shares of China’s BYD, however, now the world’s biggest maker of electric vehicles, rose on Thursday. The US tariffs may put western carmakers further behind BYD and its compatriots — by pushing their prices up just when Chinese groups are coming out with ever more affordable offerings and whizzy EV technology.

The tariffs come soon after what some analysts have called a “DeepSeek moment” — referring to China’s recent AI breakthrough — for the global car industry. BYD last week announced a superfast EV charging system that it says can add about 470km of range in five minutes. By enabling drivers to charge up an electric car about as easily as filling up a petrol one this could remove a key deterrent to consumers going electric. Weeks earlier, BYD unveiled another techno-leap: a free, advanced self-driving system called God’s Eye that it plans to install across its range.

Grid capacity might yet restrain BYD’s plans for 4,000 fast-charging stations across China, and political and practical barriers could thwart ambitions to build such networks in other big markets. Foreign rivals may, in time, replicate its charging achievements. Yet BYD’s prowess shows the focal point of EV innovation is now China. Beijing’s state-led industrial policy has built a formidable manufacturing base and catalysed a striking shift in purchasing patterns. Pure battery and plug-in hybrid cars are expected to outsell internal combustion engine (ICE) cars in China in 2025, years ahead of western rivals.

All this is happening while the EU is proposing to relax emissions rules — a perhaps predictable response to European carmakers’ failure to keep up with targets, but one that will slow EV momentum. US policy, meanwhile, has in effect been going into reverse on EVs. Trump wants to cut consumer tax incentives to go electric, and roll back clean technology subsidies in favour of his “drill, baby, drill” approach to oil

Chinese groups are being welcomed into emerging markets such as South Africa, Brazil, India and Turkey, helping China to overtake Japan in 2023 as the world’s largest car exporter.

[msongs]

1. lol the UAW doesnt care about any of this. it's gonna be passed by nt

[usonian]

2. The US exports? Wow (sarcasm)

Tariffs are going to hurt US exporters. I read an article (I'll add the link on edit) that exports are largely sevices. Ask Apple and others. They could lose bigly.

But dumshit only thinks of what fills file boxes.

[Rstrstx]

3. It is scary how fast they have moved into Mexico

Last August I remember being mildly surprised that they had one on display at the Guadalajara airport. A month ago I was stunned that they had already opened up a dealership in Reynosa (if it hasn’t washed away).

[usonian]

5. Canada and Mexico are finding alternate trade partners.

[Meowmee]

4. Does that mean they will not be available here?

That ev suv they came out with is very cheap, but I assume it would cost a lot more here.

[usonian]

6. Probably not. Protectionism is in the way.

And UAW just loves tariffs ( as cost of parts for US cars rises)

I personally don't like new cars, especially EV's because they are basically computers with an engine and wheels, and software is never ever secure or bug-free.

Bad enough my 2018 is partly computerized. Teslas and the like are 100% computerized. The computer lets you suggest what to do. Just my opinion.

[Meowmee]

7. Yes agree

I have to get a new car soon, but I will get a gas or hybrid. Although my father was thinking of buying a Leaf in the years before he died. I don't like things that are overly computerized either, too many problems. However if there were a cheaper option maybe I would consider it. Although it would entail adapting the house electricity because there are no plug in stations here. My garage said most people here did not like their electric cars and they had issues with some batteries/ repairs. They liked hybrids better I think.

[usonian]

8. Californians like hybrids a lot. Such distances.

I got a gas auto, but increased my gas mileage from the 20 year old pickup by 50%. Same 4 cylinders, just a lot newer. Good luck.

[Bernardo de La Paz]

9. This smells like the 1970s re cars. Tariffs stifle innovation because the domestic market is protected

I don't think there were tariffs in the 1970s, but the US auto companies got very complacent. Their vehicles had lousy fit and finish and they discounted the abilities of the Japanese companies.

They got the ass handed to them by those Japanese companies.