Stella Li, Executive Vice President of BYD: “This will kill these car manufacturers”

■ Stella Li, a top manager at Chinese electric car market leader BYD, discusses the company's expansion into Europe and warns competitors against relying more heavily on the combustion engine.

By Marcus Theurer, translation AutoNews24

Ms. Li, Germans, in particular, are hesitant to buy BYD cars. How do you plan to change that?

■ We are expanding our team and collaborating with our dealers. I have visited several dealers and observed that consumers appreciate BYD technology, speed, and driving experience. It will take some time for them to trust BYD, but we are committed to being a long-term player in the market.

How long will it take for BYD to persuade customers?

■ Less than half a year.

Is there only six months to increase sales?

■ Yes.

What is your sales target?

■ That is a secret, but BYD is one of the largest car brands in the world. We will also become a significant player in the European market.

The EU is imposing import tariffs on Chinese electric cars. What do you think about this?

■ Tariffs could be better for consumers. They harm them, and that's a shame. Consumers in Europe are already grappling with inflation and higher electricity and gas bills. Their access to the best automotive technology is becoming more difficult now, and they have to pay a premium because of the tariffs.

Are you still hopeful that the EU will waive the tariffs?

■ I don't think the EU will make any compromises. The automotive industry lobby is powerful. But as I said, BYD is a market participant who thinks long-term. At the end of 2025, we will start production in our new car factory in Hungary. This shows that, despite the tariffs, we are investing heavily in Europe and becoming more of a European company. We are stimulating the job market here.

If you manufacture your cars in Hungary, can you bypass tariffs?

■ When BYD creates a business plan, we don't prioritise short-term political measures.

Will there be more BYD car factories in Europe?

Yes, we will have a factory in Turkey that could commence operations in 2026.

Are you suggesting building a third factory?

■ I am still determining.

In Germany, sales of electric cars have sharply declined following the reduction of government purchase subsidies. How should the federal government respond?

■ We need a sustainable plan and long-term predictability. The Chinese government has a long-term strategy: build electric and plug-in hybrid cars. Manufacturers in China have clarity for the next ten to twenty years. However, here in Europe, the situation is uncertain, which is unsettling for customers and affecting electric car sales. There are reports of many companies reverting to combustion engine cars. If the world switches to electric vehicles in five years, those companies won't be ready because they have yet to invest. In the long term, this is very dangerous and could lead to the demise of these car manufacturers.

Despite significant criticism, should the EU adhere to its plan to prohibit new cars with combustion engines from 2035?

It should be because car manufacturers can invest in electric cars without worrying about the future.

■ However, there is no such ban on combustion engines in China.

Either a ban on combustion engines is necessary, or, as in China, a clear political directive stating that electric cars are the future is needed. This was the clear message in China ten years ago and will continue to be the case for the next twenty years.

The EU justifies its import tariffs by claiming that Chinese manufacturers receive subsidies at home, unfairly distorting competition. What is your response to that?

■ This claim is false. The subsidies are available to all, not just Chinese companies.

You mention that a European car manufacturer investing in China receives the same level of state aid as a domestic manufacturer?

Someone from the USA has invested in Shanghai. I am talking about Tesla here. The company received much better subsidies there than BYD could receive. It's not like China would say, "Ah, you're a Chinese company, so I'll give you subsidies. Subsidies exist for the entire industry.

Do you believe that there is fair competition in the Chinese car market?

■ The competition in China is exceptionally fair. I see three reasons why European manufacturers could be more competitive. Firstly, Chinese companies believed that electric cars were the future. In the beginning, they lost money, but they continued to invest. Many companies, including BYD, have almost gone bankrupt in the past ten years. However, it's paying off now because the market for electric cars is growing. The second reason is that the Chinese government has a long-term, reliable plan. The third reason is the tough competition in China. To survive, you have to get better. This has made Chinese car manufacturers very competitive. All manufacturers in the world should take part in this competition. Those who hesitate and back down will lose.

You mentioned that BYD is expected to achieve much better sales figures in Europe within six months. How crucial are plug-in hybrid cars, which have both a combustion engine and an electric drive, in achieving this?

■ It is very important for people who say they don't have enough charging options and are worried about their car's battery range. Europeans are very conservative when it comes to using new technologies, and plug-in hybrids offer them security.

Source: F.A.Z.

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