2 weeks Ago By Nick Toscano
China’s biggest electric car maker is expected to sharpen its focus on growth in Australia, doubling down on efforts to bring in new vehicles and expand its dealership network, as US President-elect Donald Trump pledges to prevent Chinese automakers from selling cars to Americans. After President Joe Biden this year quadrupled tariffs on Chinese-made electric cars to 100 per cent, Trump has signalled he could raise them to 200 per cent to protect the US auto industry from cheaper imports once he returns to the White House. BYD’s market share is rapidly growing in Australia.
Credit: Reuters The move is set to inflame trade tensions and make it “impossible” for Chinese electric vehicle brands to expand in the US, according to industry analysts, who expect Chinese manufacturers to pursue growth more aggressively in other markets. EVDirect, the Australian importer of China’s best-selling electric car brand, BYD, said the US restrictions could have a silver lining for Australians shopping for a new electric vehicle. “Australia is a very important market for BYD – it’s a mature, Western market, which has always been viewed as a really great opportunity,” EVDirect chief executive David Smitherman said.
“The silver lining ...
is the ability for the global BYD to be more focused than ever on launching new products in Australia.” BYD has rapidly gained popularity since its launch in Australia two years ago, now ranking second only to Tesla on the Australian electric vehicle sales charts. The Shenzhen-based car giant has set a goal to become one of Australia’s top-five automotive brands as it grows its product range and aims to double its local dealership network in the coming year.
Last month, it launched its first plug-in hybrid electric ute, the Shark 6, which will retail for $57,900 before on-road costs and is likely to snatch market share from Australia’s two top-selling utes, the Toyota Hilux and Ford Ranger. In February, BYD plans to launch the Sealion 7 electric SUV. “The great thing about Australia is we don’t have tariffs, and we have a significant number of new products coming,” Smitherman said.
“Our goal is to have a product in every segment in Australia.” The growing availability of BYD models in the Australian market, including some that retail for less than $40,000, has forced other major brands, including Tesla, to cut their prices, too. Trump has vowed to impose heavy tariffs on Chinese companies.
Credit: AP Prateek Biswas, a transport and materials analyst at consultancy Wood Mackenzie, said Trump’s plan to maintain or increase the Biden administration’s 100 per cent tariffs on Chinese electric vehicles would prevent Chinese manufacturers from pursuing crucial plans to grow their presence in the US. “The next question is really ‘where do they expand?’” Biswas said. “They will be looking at relatively lucrative markets, and there aren’t that many of them – but Australia is definitely one of them.
” Electric Vehicle Council head of legal, policy and advocacy Aman Gaur said Australian consumers could benefit if the US proceeded with its plan to restrict electric vehicle imports. “If the US restricts imports, I think we can expect to see increased supply to Australia and quality electric vehicles in our market under $30,000,” he said. The Albanese government’s incoming vehicle fuel pollution limits, which take effect from next year and bring Australia into line with almost every other developed country, are also expected to give motorists greater choice of low- and zero-emissions models, the industry group said.
The limits will apply only to new cars and are designed to reduce emissions by 60 per cent by 2030 by encouraging manufacturers to import either more efficient combustion-engine cars or more electric vehicles, with penalties for those that breach their cap. After years of sluggish growth, sales of electric vehicles and plug-in hybrids account for nearly 10 per cent of Australia’s new car market. But adoption of fully battery-electric vehicles has started to slow this year in line with global trends, which analysts attribute to the impact of inflation and worsening cost-of-living pressures.
Sales of hybrid and plug-in hybrid vehicles, which are typically cheaper than fully electric models, have increased. The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning .
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