Cheap Electric Car BYD Seagull Threatens America's Automotive Industry, Why?

BYD Dolphin Mini was released in Brazil. (Doc. BYD Auto)

JAKARTA - The automotive world is being shocked by the presence of BYD Seagull or its name BYD Dolphin Mini in several countries.

This tiny electric car from China is priced at a super cheap price, starting from 69,800 yuan (around Rp152 million).

An affordable electric car is the goal of many Western manufacturers today to be able to compete with Chinese manufacturers. United States automotive manufacturers, for example, from Ford, GM, Stellantis, including Tesla are also working on the cheap electric car segment but they themselves admit the price is at least 25,000 US dollars (around Rp394 million).

The emergence of this super affordable BYD Seagull sparked concern, especially in the United States. Although BYD has no plans to enter the US market, the automotive industry players there are already wary. Why?

Launching Teslarati, March 25, the first cause is because China is the largest car market in the world. Electric car manufacturers like Tesla are certainly fighting over this market cake. Second, BYD's expansion to other markets in Europe and Asia is underway.

Automotive experts predict the entry of BYD into North America is only a matter of time. In addition, other Chinese car manufacturers are likely to follow in BYD's footsteps.

Former executive of General Motors (GM), Terry Woychowski, called Seagull's presence a "standing call" for other automotive industries.

The Alliance for American Manufacturing organization is even more outspoken. They fear the entry of cheap Chinese cars - supported by the Chinese government - could be a "extinction event" for the US automotive sector.

This concern is not a figment. BYD managed to sell 1.57 million units of battery electric cars (BEV) last year. Compare it to 2020, where they only sold 130,970 units.

Even Elon Musk, CEO of Tesla, who has been supporting healthy competition in the world of electric cars, has also spoken up. He recognizes Chinese car manufacturers as the strongest in the world.

According to Musk, Chinese manufacturers have the potential to "destroy" other car companies in the world if there are no trade barriers.