- BYD Co. has reportedly received €3.4 billion ($3.7 billion) in direct government subsidies from China to bolster its dominance in the electric vehicle (EV) market.
- The subsidies surged from €220 million in 2020 to €2.1 billion just two years later, according to a study by Germany’s Kiel Institute for the World Economy.
- Alongside support for local battery manufacturers and rebates for car buyers, these subsidies have propelled BYD’s expansion into European markets.
- The European Union is investigating alleged unfair competition stemming from Chinese subsidies, with concerns raised about BYD and other Chinese automakers like Nio and Geely.
China’s push for electric vehicles just got a major boost, and BYD Co. is at the forefront. A study by experts in Germany found that BYD received a whopping €3.4 billion ($3.7 billion) in direct support from the Chinese government. That’s a big jump from just a couple of years ago when it was €220 million.
This support isn’t just money; it’s also help for local battery makers and discounts for people buying BYD cars. All this backing has helped BYD become a big player not only in China but also in Europe.
But not everyone is happy about it. Some in Europe think China is giving its carmakers an unfair advantage. They worry about Chinese cars flooding their markets. So, the EU is looking into it, and they might put tariffs on Chinese cars soon.
China, though, says its carmakers are winning fair and square. They say it’s because of their great technology and supply chains, not just government help.
Now, Germany’s Chancellor is heading to China soon, and experts think it’s a good chance to talk about these subsidies.
BYD’s story is pretty impressive. They started out making batteries but then jumped into making electric and hybrid cars. And with their prices lower than Western brands, they’re really making waves. For example, their Seagull hatchback, with its cool rotating touchscreen, sells for less than $10,000.
As the world shifts towards electric vehicles, who’s getting help from governments and how fair the competition is will be big questions.
