China's $10,000 EV Invades Europe! Can Carmakers Compete?

Already, low-cost electric vehicles from China are making their way into Europe, which is putting one of the most important sectors in the area under pressure. BYD Company, which had previously surpassed Tesla Inc. as the largest electric vehicle (EV) manufacturer in the world, is ready to up the stakes.

Last month, the Chinese automaker said its Seagull hatchback will arrive in Europe next year. The automobile costs less than $10,000 in China and has a revolving touch screen and wireless phone charging. BYD officials estimate the Seagull to sell for under €20,000 ($21,500) in Europe after customs and adjustments.

A Chinese electric car threatens European industry giants at a price of $10,000

The four-seater would cost thousands less than electric runabouts Stellantis NV, Renault SA, and others want to use to bridge the energy transition. Its anticipated arrival puts pressure on European manufacturers to dominate the post-combustion engine era. A Brussels anti-subsidy inquiry is unlikely to stop the danger.

“We are looking very closely at this model and others coming from Chinese EV makers,” said Ford Motor Co.'s European EV chief Martin Sander. “Of course, new competition makes us nervous.”

BYD's Seagull's build quality, design, and technology are impressive for its pricing. No one-off: At a London industry event this month, European Managing Director Michael Shu indicated the business will launch a €25,000 luxury EV before the city car. BYD's plans for two regional factories will mitigate EU levies aimed to impede its growth.

How Chinese Carmakers Dominate EVs: QuickTake

The model is popular internationally. Since February, customers in Mexico, where the car is called the Dolphin Mini, have started buying the 358,800-peso ($19,780) automobile despite poor charging infrastructure.

BYD Executive Vice President Stella Li said at a presentation last week in the capital that Mexico “is not great for us, but in the end we found a lot of demand, a lot of heat for this,” introducing a plug-in hybrid pickup.

BYD is leading Chinese carmakers that are eyeing exports after dominating their local market. In January, Tesla CEO Elon Musk threatened to “pretty much demolish” most carmakers without trade restrictions.

President Joe Biden has virtually quadrupled US levies on Chinese EVs, effectively banning imports, while European tariffs are more problematic. Regional carmakers are more dependent on China than US carmakers, rendering them vulnerable to retaliation. Beijing reiterated the point on Wednesday by threatening 25% taxes on imported automobiles with big engines, which would hit Mercedes-Benz Group AG and BMW AG hard.Read on: Biden Says China is ‘Cheating’ on Trade, Orders Tariffs

European combustion-engine vehicle sales will end, requiring cheaper automobiles to encourage mass-market adoption. The EU began investigating China's EV business last year and is considering boosting duties, but industry leaders and experts have objected.

Julia Poliscanova, senior director for cars and e-mobility supply chains at advocacy group Transport & Environment, said tariffs should not insulate our key manufacturers from serious competition. On top of climate objectives, which are vital, local jobs and decarbonization without de-industrialization matter.

Read More: EV Market Jump to $57 Trillion Sparks Global Flashpoints

BYD began producing batteries in 1995 and moved into cars in 2003. Three years ago, it started selling passenger vehicles in Europe and created waves at Paris and Munich auto shows. BYD shares rose 9.6% this year after falling 23% in 2023. After years of rebuilding its dealer network and client base after its 2007 takeover by Shanghai Automotive Industry Corp., erstwhile British brand MG Motor is leading the way. The Chinese-made MG4 is currently the UK's second-best selling EV behind Tesla's Model Y.

Existing European carmakers are seeking unconventional solutions including new collaborations. Renault is actively seeking partners to decrease costs on a small-car platform, while Stellantis will begin selling cars built by its joint venture with Zhejiang Leapmotor Technologies Ltd. in September.

“We have no intention to let this price band open for our Chinese competitors,” Stellantis CEO Carlos Tavares said last week regarding the European Seagull, rejecting tariff calls. We don't think protectionism will solve this rivalry.

Tavares has traditionally stressed quick response to opponents. The October contract with Leapmotor gives the Jeep and Peugeot owner access to China's cost advantages and superior EV technology, which the US and EU say is subsidized by unfair government subsidies. Last year, Chinese brands had 7% of Europe's electric market, but Transport & Environment expects them to reach 11% this year and 20% in 2027.

According to assessments, European and US automakers should take the Seagull seriously. Caresoft Global, a Michigan engineering business that disassembles cars to verify quality and manufacture, examined the Seagull for cost-saving elements.

“Everyone in the industry should be talking about this car, seriously, because it’s quite a vehicle,” Caresoft President Terry Woychowski said in an InsideEVs video. “It changes the definition of cheap and cheery, which was, ‘Oh, sell something really cheap.’ It doesn't seem like that."

About Author

Muhammed Farghaly
Muhammed Farghaly
56 Total posts


Read Also

Technology News
Saudi Authority announces the launch of self-driving air taxi during Hajj 2024

The Transport General Authority of Saudi Arabia has declared the commencement of a self-driving air transport trial at sacred sites.

Technology News
UAE launches a Unified Platform for Residency Services and Work Permits

The Ministry of Human Resources and Emiratisation has embarked on the second phase of its "Work Package" initiative, extending its services to all emirates through the "Work in the Emirates" digital platform.

Technology News
Dubai launches a new system to get instant access to a used car accident history

AI technologies are set to revolutionize the way accidents are analyzed and reported, particularly in the context of vehicle purchases in Dubai.

Technology News
Dubai inaugurates a new Dh2-million station in Jebel Ali to monitor air pollutio

Dubai has just revealed an advanced air quality monitoring system that can detect 101 distinct air contaminants. This cutting-edge facility, valued at Dh2 million, is a major step forward as the first permanent air quality monitoring station set up...

Technology News
Visa merges debit and credit into one card, unveils a new payment options

Visa's latest announcement signals a significant shift in the payment landscape, particularly in the Middle East, as it introduces a groundbreaking initiative to offer both debit and credit services on a single card.

Technology News
UAE Issues an Apple Security Alert as Residents Warn Against Hackers

The UAE's Cybersecurity Council (CSC) recently issued a security alert strongly advising residents to promptly update their Apple devices.

Technology News
OpenAI introduces "GPT-4o" a new AI model

OpenAI has introduced GPT-4o, the latest advancement in AI technology, aimed at democratizing access and enhancing user experience across voice, text, and vision applications.

Technology News
UAE announces New WhatsApp updates to improve privacy, convenience

WhatsApp, a widely utilized messaging application, has recently unveiled three novel updates in the span of the last month, with a primary focus on bolstering privacy measures, fortifying security protocols, and augmenting user convenience.

Technology News
UAE announces the launch of "Cabby" app for taxi drivers in Ajman

The Ajman Transport Authority has introduced the initial phase of its innovative 'cabby' application tailored specifically for taxi drivers.

Technology News
UAE launches A new feature in WhatsApp that eliminates the need for the Internet

The renowned WhatsApp messaging application is poised to introduce an innovative feature aimed at facilitating file exchange among users without the necessity of an active internet connection.

Technology News
UAE: Flying Taxis to Cut Abu Dhabi-Dubai Travel to 30 Minutes

A US-based enterprise is advancing the development of electric vertical takeoff and landing (eVTOL) aircraft for the purpose of launching commercial passenger services, aiming to commence operations by either 2025 or early 2026.

Technology News
Tesla announces the launch of new models ahead of planned timeline, shares jump

Tesla announced plans on Tuesday to introduce new models by early 2025, leading to an impressive surge of nearly 11% in its shares during after-hours trading.

Technology News
Uber introduces safe ride-hailing accounts for teens in these countries

Uber has introduced a novel feature catering to families' needs by launching accounts tailored for teenagers in the United Arab Emirates, Saudi Arabia, Qatar, and Jordan.

Technology News
OpenAI announces the launch of new voice-cloning tool

OpenAI recently unveiled "Voice Engine," a voice-cloning tool that takes a cautious approach to prevent misuse and safeguard against the proliferation of audio fakes.

Technology News
Elon Musk Opens xAI’s chatbot Grok to Public Source

The decision to transition to open source provides the general public with unrestricted access to explore and manipulate the underlying code of the technology.

Technology News
Saudi Arabia launches "Saudipedia" digital platform at FOMEX

Saudi Media Minister Salman Al-Dosary unveiled the digital platform 'Saudipedia' on Monday during the Future of Media Exhibition (FOMEX) in Riyadh.

Technology News
UAE: Samsung Launches Galaxy S24 Series with AI Enhancements

Samsung has officially unveiled its latest Galaxy S24 series, introducing three variants: Galaxy S24 Ultra, Galaxy S24+, and Galaxy S24. The devices are set to hit the UAE market later this month, and pre-orders for consumers in the UAE and Gulf...

Technology News
Abu Dhabi Unveils City-Wide Free Wi-Fi for Public Connectivity

Unrestricted Wi-Fi access has been implemented throughout the entire emirate as part of an innovative initiative launched by the Department of Municipalities and Transport (DMT) in Abu Dhabi.

Technology News
Apple Unveils iOS 17.2 Update with Enhanced Security Features

In a recent announcement, Apple, the American tech giant, revealed the launch of its latest software update, iOS 17.2, aimed at enhancing the user experience on its smart devices.

Technology News
Latest WhatsApp Features in UAE: Chat Lock, Channels, Edit Messages

In response to growing privacy concerns, WhatsApp introduced the Chat Lock feature in May 2023.

Technology News
UAE Security Alert: Urgent Updates Needed for Apple and Chrome

On Saturday, the United Arab Emirates issued urgent security warnings, emphasizing the importance of updating software and web browsers. These warnings are directed squarely at Apple and Chrome users, who are especially susceptible to security flaws....

Technology News
OpenAI Collaborates with UAE G42 to Advance AI Adoption

OpenAI, the organization behind ChatGPT, has entered into a partnership with G42, a prominent Abu Dhabi-based technology conglomerate.

Technology News
Apple unveils iOS 17 New Features Enhancing User Experience

Just 17 days after introducing its iPhone 15 series at the "Wonderlust" event in Cupertino, California, Apple has released iOS 17.

Technology News
Apple introduces new way to charge iPhones with latest release

Apple unveiled its latest lineup of iPhones and Apple Watch Series, introducing a range of innovative features and notable structural changes to these iconic devices. This announcement marked a significant moment for tech enthusiasts and Apple...

Technology News
UAE Authority Raise Alarm Over Security Flaws for Apple, Android users

A cyber security threat that may have an effect on users of Apple and Android has been alerted to by the UAE Cyber Security Council.

Technology News
Urgent statement: Tariq Phone challenges to protect your personal data

According to the Security Council, Apple recently released an "emergency update" for its electronic devices that fixes a security vulnerability in some of its products.

Technology News
Urgent: Apple announces an update on Apple phones that surpasses Google

Apple offers a new function for Apple Maps, which can perform better than Google Maps, in the most recent update to the iOS 17 operating system. The new feature relates to the ability to pre-download Apple Maps for use in specific regions.

Technology News
Twitter owner buys Lasky platform

According to a reliable source, the American billionaire Elon Musk's company, X Corp, which also owns the social networking platform company Twitter, has purchased the employment platform Lasky, which specialises in the technology sector. This...

UAE Issues an Apple Security Alert as Residents Warn Against Hackers