BYD sees bigger profits on some EVs sold in the EU than in China, even with tariffs
After the EU announced new tariffs on Chinese EV imports, BYD is subject to an additional 17.4% duty. However, with BYD reportedly generating higher EV profits on models like the Seal U in the EU than in China, the EV leader is expected to overcome the impact.
BYD announced it would enter the European car market in 2020. After launching in Norway in 2021, BYD showcased its EV lineup, including the Atto 3, Han, and Tang models.
Since then, BYD has strategically expanded in the region, adding models like the Dolphin and Seal. Last year, the Atto 3 was BYD’s best-selling EV in Europe, with 12,363 models sold. It was followed by the Dolphin (1,079), Tang (1,055), and Han (849).
However, BYD sees sales accelerating over the next few years after learning more about the EU market.
The high expectations come despite new EU tariffs on imported EVs from China. After global markets became “flooded with cheaper electric cars” from China, EU Commission President Ursula von Der Leyen announced an investigation in October.
After finding that Chinese EVs benefit from “unfair subsidization,” the EU pre-disclosed additional tariffs that it plans to impose on automakers this week.
BYD EV profits are still higher in the EU with tariffs
The additional Tariff for BYD is 17.4%. If no other resolution is found, it will be applied on July 4, 2024.
Meanwhile, recent research from Rhodium Group shows the tariffs may not be enough to slow BYD and other Chinese EV makers from gaining market share.
According to the study, duties in the 40 to 50% range, or even higher, would likely be needed to slow the momentum.
An increasingly competitive Chinese market has led to aggressive price cuts. As a result, many electric cars sell for much more in the EU than in China. And it’s not just Chinese automakers.
Volkswagen’s ID.4 sells for around 50% more (46,335 euro vs 31,011 euro) in Europe than in China. BYD’s Seal U (Comfort) costs nearly 93% more (41,990 euro vs 21,769 euro). The same goes for other popular models like the BYD Atto 3 (+112%) and Volkswagen ID.3 (57%).
According to Rhodium’s price analysis, BYD makes around 14,300 euros ($15,360) on each Seal U model sold in the EU. In China, BYD earns a profit of 1,300 euros ($1,400) for each model sold.
Based on MSRPs (after shipping, tariffs, distribution, and VAT), BYD earns 13,000 euros ($14,000) more on every Seal U model sold in the EU (the “EU premium).
The EU would need to drastically increase tariffs to reduce the incentive to export. Even a 30% duty would leave BYD with a 15% profit, or 4,700 euros ($5,050) compared to China.
Tariffs around 45% to 55% might be needed to lower profits. However, it would also likely hurt foreign automakers even more, such as BMW and Tesla, which export from China.
BYD’s CEO, Wang Chuanfu, called the US and Europe “afraid” of Chinese EVs last week. “If you are not strong enough, they will not be afraid of you,” he added.
Wang said the tariffs are a testament to China’s auto industry strength. With BYD’s first factory in Europe set to begin production later this year, the EV maker expects to overcome the potential impacts of higher tariffs.
Source: CarNewsChina, Rhodium Group
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Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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