Chinese Electric Vehicle Company BYD

Chinese electric vehicle (EV) giant BYD is embarking on a rapid global expansion to challenge American company Tesla. However, it is stated that this expansion has been slow. Four sources close to the understanding of BYD company's management stated that although BYD's global goals have not been fully expressed in public, a joint move to be made around the world has become the most important strategic focus for China's largest electric vehicle manufacturer.

In addition to some European market penetrations already underway, BYD has spent a significant part of the last year working on how to set up a US distribution network for new electric vehicle models, sources said.

It was noted that Detroit-based consulting company Urban Science provides consultancy services to the company on how many stores it will need in each state and the formats of operating stores. A BYD official said BYD plans to attend this year's global CES tech expo in Las Vegas, where it plans to showcase next-generation battery electric vehicles (BEVs) and plug-in hybrids for the US market, but strained relations between Washington and Beijing He explained that anti-Chinese sentiment in the United States and President Joe Biden's move to prioritize domestic electric vehicles, battery and battery cell production caused BYD to pause.

Officials say BYD's US project has been hit hard by the Biden administration's Inflation Reduction Act (IRA), which imposes rules on where electric vehicle batteries and battery materials can be sourced, and offers a $7,500 tax break on electric vehicles manufactured and assembled in North America. stressed.

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Sources stated that although BYD is currently taking a cautious approach towards the US in investments, it may focus on the US automobile market in the long run.

On the other hand, Chinese battery manufacturer CATL has slowed its investment planning in battery plants in the US and Mexico, fearing that the US Inflation Reduction Act (IRA) rules on material procurement will increase production costs. US firm HAAH Motors Holdings was planning to import cars designed by the Chinese Chery Automobile, but canceled its plans due to concerns over trade tensions and the law in question.