Denies Plans To Enter US Market, BYD: US Manufacturers Are Afraid Of Excessive

EXPLORER NO. 1, BYD's first cargo ship has a carrying capacity of 7,000 vehicles introduced in mid-January. (Doc. BYD)

JAKARTA - BYD has been in the global spotlight in recent years, even winning the electric car sales crown from Tesla in the late quarter of 2023.

Most BYD sales are still concentrated in China, but BYD has expanded to countries in Asia, Europe, Australia to the Americas.

But recently, BYD stated that it had no plans to enter the United States (US) market.

It is known that US automotive officials were angered by BYD along with other Chinese car manufacturers when announcing plans to set up a car factory in Mexico. This move is considered to be able to keep them from the import rates imposed by the US.

The threat from China's automotive industry is in sight making the White House consider increasing regulations beyond existing import rates. The US Congress is also discussing increasing import rates further. One of the proposals reported will limit the origin of electronic devices used in connected cars due to concerns regarding surveillance.

However, these concerns appear to be easing a bit. The reason, BYD, through its executive vice president, Stella Li, stated that the company has no plans to enter the US market, at least for now.

"We don't plan to get into the US," Li told Yahoo Finance, February 28.

"The US market is indeed interesting, but the situation is very complicated," he added.

The auto industry in the US as a whole is concerned about China's rise. Stellantis CEO Carlos Tavares compared this phenomenon with the rise of the automotive industry between Japan and South Korea decades ago.

Tesla CEO Elon Musk is publicly concerned that Chinese automakers could "destroy" the Western auto industry, while Alliance for American Manufacturing calls China an "existent threat."

Some US automakers, such as Ford, are taking their own steps by accelerating the development of cheap electric cars to compete with China.

"In my opinion, they are too much. They are too afraid of competition from China. I don't believe that trade protection will help any company," Li said.

"China market is the most competitive market. If you are the winner in the most competitive market, why can't you win in other countries?" he concluded.