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The European Union launched an investigation over Chinese EV subsidies as the global markets are “now flooded with cheaper electric cars.” European Commission President Ursula von der Leyen revealed the probe Wednesday, claiming Chinese EV makers benefit from state subsidies.

The EU probe could lead to potential tariffs, which would likely have significant impacts on the market and Chinese EV makers.

“Global markets are now flooded with cheaper electric cars.” the EU Commission chief said in her annual speech to the European Parliament. “And their price is kept artificially low by huge state subsidies.”

The move comes as electric vehicle imports from China continue gaining momentum in the region.

China’s largest EV makers, like BYD, NIO, and XPeng, are launching models designed for the European market. And so far, it’s working.

New Energy Vehicle (NEV) exports from China rose 63.6% through the first seven months of the year, according to data from the China Association of Automobile Manufacturers (CAAM).

The European expansion was evident at the IAA Mobility show in Munich, with Chinese EV makers doubling their presence compared to 2021. EV leaders, including BYD and SAIC’s MG, unveiled impressive all-electric models aimed at the EU market.

EU-Chinese-EVs
Michael Shu, Managing Director of BYD Europe, speaks at the IAA (Source: BYD)

BYD showcased six EVs, including the SEAL electric sedan and SEAL U, designed for European customers. The BYD Seal starts at 45,000 euros (about $48,000) with up to 570 km (354 mi) range.

NIO also launched its ET5 Touring this summer, its first electric station wagon, designed to rival German automakers including Porsche and BMW.

NIO-ET5-Touring
NIO ET5 Touring designed for Europe (Source: NIO)

EU probes Chinese EVs over state subsidies

With new models like the SEAL and ET5 Touring rolling out with competitive pricing and often better technology, mass-market automakers like Volkswagen and Stellantis are feeling the pressure.

According to Jato Dynamics (via Reuters), the average retail price of Chinese EVs in Germany was 29% lower than non-Chinese models, excluding incentives and discounts.

EU-Chinese-EVs
BYD Yuan Plus EV (Source: BYD)

The EU is already moving toward a clear future. As part of its Green Deal, the EU approved a law banning the sale of new ICE passenger cars from 2035. The move has accelerated EV sales in the region, but there are concerns over China’s economic practices.

The probe comes as the EU looks to avoid repeating what happened with the solar industry when cheaper Chinese imports squeezed many manufacturers out of the market.

If the EU decides to slap tariffs on Chinese EVs, it would have broader impacts, including brands that build cars in China, such as Tesla, Volvo, Polestar, Renault, and BMW.

EU-Chinese-EVs
Volkswagen ID.7 (Source: VW)

The Commission will have up to 13 months to decide to implement tariffs above the 10% standard rate.

Shares of Chinese EV makers, including NIO, Xpeng, and BYD, were down in Wednesday’s trading session following the news.

Electrek’s Take

Although the EU is looking to protect its auto industry from being overtaken by cheaper Chinese EVs, a tariff may have significant impacts on the market.

For one, automakers in Germany rely heavily on China to drive sales revenue. Volkswagen has generated nearly half of its revenue from China, but the automaker is losing out to domestic EV makers as the EV transition heats up.

BYD surpassed VW as China’s top-selling car brand for the first time earlier this year. Meanwhile, Volkswagen has already slashed prices in the region in a bid to even the playing field, but how long can this go on?

Europe’s largest automaker also recently made several partnerships in the region to advance its position, including a $700 million investment into XPeng.

The biggest issue facing the EU is that many of these Chinese EVs are built better with superior technology and designs. While many European automakers delayed the transition to electric, EV makers like BYD and NIO took advantage of it, accelerating development and production.

NIO’s CEO William Li warned about the possibility of “protectionist policies” in April due to their cost advantages.

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Wheel-E Podcast: Micromobility Europe 2024, 80 MPH army e-bike, more

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Wheel-E Podcast: Micromobility Europe 2024, 80 MPH army e-bike, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes all the cool stuff we saw at Micromobility Europe 2024, new low-cost Lectric XP Lite 2.0, an 80 MPH military e-bike, how Paris cleaned its air by kicking out cars, and more.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 12:00 p.m. ET (or the video after 1:00 p.m. ET):

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BYD cuts prices on its best-selling Atto 3 electric SUV in Australia to rival Tesla

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BYD cuts prices on its best-selling Atto 3 electric SUV in Australia to rival Tesla

A new price war is fueling EV sales in Australia as the competition heats up to gain overseas market share. BYD launched its new Atto 3 electric SUV in Australia with several updates, including lower prices, as it looks to chip away at Tesla’s lead.

Chasing Tesla’s lead

Last month, electric vehicle sales in Australia were boosted by price cuts from leaders like Tesla and BYD.

According to the latest data from the Federal Chamber of Automotive Industries (FCAI), 8,974 fully electric vehicles were sold in Australia last month. That number is up from the 6,194 EVs sold in April 2024 and 8,124 handed over last May.

The growth was enough for EVs to capture 8.1% of all vehicles sold in Australia last month, up from 7.7% in May 2023.

Tesla still leads with Model 3 sales reaching 1,958, surpassing its best-selling Model Y (1,609). Tesla has now sold 8,823 Model 3s and 9,610 Model Ys in Australia year-to-date.

Although Tesla has maintained a market share of over 60%, BYD is chipping away at its lead.

With 3,567 EVs sold in May, Tesla held a 40% share. BYD’s new Seal was the third best-selling EV last month, with 1,002 units sold, while the Atto 3 was fourth with 737. The growth bumped up BYD’s market share to 18%.

BYD-prices-Australia
BYD SEAL (Source: BYD)

BYD launches new Atto 3 with lower prices in Australia

The Atto 3 is still BYD’s best-selling EV in 2024, with 3,366 models sold, while the Seal is a close second at 3,306.

BYD believes 2024 will be a pivotal year as it rolls out new models and aims to take leadership in Australia’s EV market.

Following the new Seal, BYD launched a “major upgrade” for the Atto 3 Friday. BYD’s new Atto 3 features a 15.6″ screen (up from 12.8″). In addition to new features like added camping mode and karaoke, the new Atto 3 features lower prices.

The standard range Atto 3 now starts at AUD 44,449, while the Extended Range costs AUD 47,449 (before on-road costs). BYD’s new Atto 3 prices are down AUD 3,562 and the cheapest they have been so far, according to Australia’s Drive.

Powered by a 50 kWh battery and 150 kW electric motor, the new standard Atto 3 features up to 214 miles (345 km) WLTP range. The Long-Range model, with a 60 kWh battery, can travel up to 261 miles (420 km).

BYD Atto 3 vs Tesla Model Y Price
(AUD)
Range
(WLTP)
BYD Atto 3 Standard Range $44,449 214 miles (345 km)
BYD Atto 3 Long Range $47,449 261 miles (420 km)
Tesla Model Y RWD $55,900 283 miles (455 km)
Tesla Model Y AWD Long Range $69,900 331 miles (533 km)
Tesla Model Y AWD Performance $82,900 319 miles (514 km)
BYD Atto 3 vs Tesla Model Y prices and range in Australia

Meanwhile, Tesla’s RWD Model Y starts at AUD 55,900, with up to 283 miles (455 km) WLTP range. The Long-Range AWD model starts at AUD 69,900 with up to 331 miles (533 km) WLTP range.

Which one are you buying? The new BYD Atto 3? Or the Tesla Model Y? Let us know in the comments below.

Source: Drive, BYD

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Tesla produces 1,300 Cybertrucks per week, moving from Foundations Series next quarter

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Tesla produces 1,300 Cybertrucks per week, moving from Foundations Series next quarter

Tesla confirmed that it managed to produce 1,300 Cybertrucks in a week and it is moving from its Foundations Series production run next quarter.

We haven’t had a lot of updates from Tesla about the Cybertruck production ramp.

Actually, the best one we got was from a recall, which confirmed that Tesla had produced just short of 4,000 Cybertrucks as of April.

Shortly after, Tesla confirmed that it achieved a production of 1,000 Cybertruck in a week in April.

We haven’t seen an update since, but we noted that Tesla seemed to be ramping up production based on sightings at Gigafactory Texas.

Yesterday, at Tesla’s annual shareholder meeting, Tesla released a bit more information about the Cybertruck production ramp:

  • Elon Musk said Tesla recently produced a peak of 1,300 Cybertrucks in a week
  • Elon Musk said Tesla would move away from production Foundation Series Cybertrucks in Q3
  • Tesla said it aims to be at 2,500 Cybertrucks per week by the end of the year

This would currently put Tesla at a capacity of 65,000 Cybertrucks per year and looking to exist the year with an annual capacity of 125,000 units.

Tesla has previously stated that it aims to have a full capacity of 250,000 Cybertrucks, but it plans to achieve that next year.

Moving away from the Foundation Series would presumably mean that Tesla is going to stop bundling all options together for the Dual Motor and Cyberbeast. The automaker might also release new trims – though those weren’t expected until next year.

Electrek’s Take

The Foundation Series bundles push the Cybertruck price to $100,000. Despite the hype around the Cybertruck, there’s a limited market for trucks at over $100,000.

Moving away from the Foundation Series bundles should reduce the price a bit as the dual motor is actually supposed to start at $80,000.

It will also give us more clarity into the option pricing.

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