Chinese EV giant founder claims West fears rise of Chinese electric cars

In a bold statement that underscores the rising tensions between China and the West over the electric vehicle (EV) industry, Wang Chuanfu, the founder and chairman of BYD, one of China's leading EV manufacturers, claimed that foreign countries are "afraid" of Chinese electric vehicles. Wang's remarks came during a speech at an industry summit held in the southwestern Chinese city of Chongqing on Friday.

The 58-year-old billionaire, who helms China's largest automaker, took a swipe at the efforts of European and U.S. authorities to constrain imports of Chinese-made electric cars. "There are many examples of politicians in other countries who are worried about EVs in China," Wang stated, asserting that the reaction of Western nations is a testament to the strength and competitiveness of China's automotive industry.

"If you are not strong enough, they will not be afraid of you," he told the audience, highlighting the perceived threat posed by China's rapidly growing EV sector.

Wang's comments come amidst escalating trade tensions between China and the West over the EV industry. The European Union is expected to unveil tariffs targeting Chinese electric cars in the coming weeks, following an investigation into Beijing's alleged subsidies for its domestic EV sector. This move is likely to impact the small but growing number of Chinese EV imports into Europe.

China, in turn, has hinted at retaliatory measures, suggesting the imposition of its own 25 per cent tariffs on certain imports, further exacerbating the trade dispute.

According to data from Dataforce, EVs manufactured by Chinese brands, such as SAIC's MG and BYD, accounted for just under 9 per cent of battery-electric vehicles sold in Europe last year. However, this figure is projected to rise to approximately a fifth by 2027, as reported by the lobby group Transport & Environment in March.

BYD itself has emerged as a dominant player in the global EV industry, having halted production of cars solely with combustion engines in early 2022. By last year, the Shenzhen-based auto giant had produced and sold 3 million electric and plug-in hybrid vehicles, securing a spot in the top 10 list of global automakers by sales.

During his speech on Friday, Wang called for the industry to embrace greater competition to manage the transition to electric vehicles effectively. In recent months, BYD has spearheaded a new price war in China, slashing the costs of its EVs and plug-in hybrids across the board, targeting traditional automakers such as Toyota and Volkswagen Group with the slogan "electricity is cheaper than oil."

Wang added that electric and plug-in hybrid vehicles are on their way to overtaking conventional engines, stating, "That is the overriding and unstoppable trend."

As the global EV market continues to evolve rapidly, Wang's comments highlight the growing tensions between China and the West over the future of the automotive industry, with both sides vying for dominance in this crucial sector.