■ Why Kia is still ahead of BYD in Europe!
By Patrick Freiwah, translation AutoNews24
Amsterdam/Frankfurt – The debate over punitive tariffs on electric cars from China is ongoing. Whether this is primarily about protecting the domestic car industry or serves as a symbolic economic measure remains uncertain.
■ Stella Li, the head of BYD Europe, stated that the successful Chinese carmaker will not introduce low-priced electric cars in this continent in the future, effectively leaving domestic suppliers behind.
BYD in Europe: Electric cars for at least 30,000 euros?
A report by Reuters states that BYD will not be able to sell electric cars in Europe for less than 30,000 euros. It remains uncertain whether and how much of the Chinese manufacturer's punitive tariffs on EU imports will transfer to consumers.
If the proposal is implemented, Europe plans to impose an additional 17 per cent tariff on BYD's imports in addition to the standard 10 per cent tariff. This measure is aimed at reducing the perceived threat of competition from Asia. Li criticises this EU plan: "Politicians should avoid imposing tariffs that raise production costs and create confusion in the car industry."
■ Chinese manufacturers are increasingly establishing production facilities in Europe including BYD.
The company's vice president has stated that BYD aims to manufacture vehicles for local European markets shortly, rendering punitive tariffs unnecessary. The company intends to source as many materials as possible from European suppliers. From 2025, most of its electric cars will be assembled at a factory in Hungary, with plans to expand production to Turkey later.
Stella Li states that BYD's sales struggles in countries like Germany are due to inadequate infrastructure setup!
■ Kia has a competitive advantage over BYD due to higher demand and more affordable electric cars.
In comparison, the South Korean manufacturer Kia has long since gained a foothold on the European continent: the Hyundai sister company has been present in Europe for over 30 years and is now one of the most popular import brands.
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While the brand's electric vehicles are experiencing increased demand, the CEO predicted a price decrease for the model range in an interview with Welt.
Kia plans to introduce an electric car priced at 25,000 euros in this country by 2027. President Ho-Sung Song stated, "Approximately a quarter of the cars we sell globally fall within the price range of 15,000 to 25,000 euros. Creating an electric car in this price range presents a significant challenge."
Currently, the most affordable electric Kia is the crossover EV3, with prices starting at around €36,000. Next year, the Kia EV2 is expected to expand the range at the lower end, with a starting price of €30,000.
Car manufacturers consider the €25,000 price point the target for affordable electric mobility. Volkswagen plans to introduce a corresponding model, the electric Polo successor known as the VW ID.2, starting in 2025.
■ Kia has an easier time in Europe than Chinese manufacturers like BYD!
The CEO of Kia explains that European car buyers tend to be very brand loyal. Kia has developed a strong base of satisfied customers who appreciate the brand's design and have confidence in its technology and quality.
Providers from China have been present for only a short time and have yet to build a strong reputation.
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