SHOULD THE GLOBAL AUTO SECTOR BE WORRIED?
The Super e-Platform comes just weeks after BYD announced the release of God’s Eye, which will be offered free, even in its cheapest cars.
Tu Le, founder of consultancy Sino Auto Insights, said the fast-charging announcement coupled with the God’s Eye system had significantly ratcheted up pressure on global carmakers.
Unlike any other major global carmaker, BYD boasted intellectual property across EV, battery and charging technology, argued Le, which meant the systems could be integrated “much easier and cleaner” than in the rest of the sector.
“Being able to offer these technologies on mass-market vehicles is where the difference between BYD and everyone else is,” he said. “BYD likely put a few global brands out of business.”
However, rising trade barriers and western concerns over the national security risks of Chinese technology mean groups such as BYD still face immense uncertainty around market access beyond China’s borders.
Kim Seung-tae, an executive at the Korea Battery Industry Association, noted that while rival Korean groups were chasing BYD’s technological progress, “the trade environment, as well as technology, is important”.
“Our companies will maintain their dominance in the US market as long as the IRA [Inflation Reduction Act] is maintained,” he said, referring to the Joe Biden-era legislation in the US which excluded electric vehicles with Chinese batteries from benefiting from tax credits.
Kim added: “Although competition is severe in Europe, we will have more opportunities there as environmental regulations get stronger, given the Chinese weakness in ESG [environmental, social and governance policies] and labour rights.”
