As Chinese-made electric vehicles face high tariffs in both Europe and America, an intriguing question arises for electric vehicle drivers: Can the race to make electric vehicles more affordable continue if the world leader is eliminated from the race?
China's BYD, considered a global leader in affordability, had to scale back its plans to enter the US market after the Biden administration imposed 100% tariffs on Chinese-made electric vehicles in May.
And now, according to Automotive News, the Chinese juggernaut also appears to be delaying plans for Canada.
The decision follows months of lobbying efforts with the Canadian government and negotiations between BYD executives and dealers across Canada. But in late August, Ottawa followed in the U.S.'s footsteps and announced it would impose its own 100 percent tariff on Chinese-made electric vehicles by October.
And according to Automotive News, BYD has stopped all communication with dealers since August.
Although BYD has not made any official statements, analysts do not expect the situation for Chinese automakers to improve with the new Trump administration in the US
While some analysts believe BYD could still try to absorb the tariffs on some of its vehicles like the Atto 3 and the Seal, the resulting prices would make them significantly less competitive. The BYD Seagull, the brand's cheapest electric vehicle at $10,000 in China, is considered too small to attract much buying interest in the United States
In the US, Tesla recently tempered expectations for a more affordable electric vehicle. CEO Elon Musk said a $25,000 Tesla was “pointless.”
Meanwhile, some rival electric vehicle makers in the U.S. are pushing more aggressively into the affordable market. General Motors has already launched its Chevy Equinox EV with a price tag of $27,500, including federal tax credits. And Volkswagen America plans to launch an electric vehicle in the U.S. for under $35,000 by 2027.
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