Illustration: Liu Xiangya/GT
China's biggest electric vehicle (EV) maker BYD has posted higher quarterly revenues than US EV maker Tesla for the first time,
MK sport according to the Financial Times. BYD's revenues for the third quarter reached 201 billion yuan ($28.2 billion), surpassing the $25.2 billion in sales that Tesla reported last week. The Chinese carmaker sold a record 1.1 million cars in the three-month period.
Amid intensifying competition in EV markets and rising protectionism in some Western countries, this development highlights BYD's strong competitiveness in the global EV market and the immense potential of China's EV industry. Although there is a certain pressure and some impact of protectionist practices from the West on Chinese EVs, this does not hinder the continuous development of China's EV industry.
The global EV market is experiencing a significant rise in protectionism from some Western nations. The US and Canada have raised tariffs on imports of EVs from China to 100 percent. Meanwhile, the EU, despite opposition from some member states and businesses, decided to implement protectionist tariffs on Chinese EVs in its final ruling on the anti-subsidy investigation into Chinese EVs.
Rising Western protectionism will undoubtedly have an impact and generate uncertainties about the future growth of overseas markets of Chinese EV makers like BYD. In the face of protectionism and geopolitical challenges, Chinese EV manufacturers need to remain vigilant, respond flexibly and actively prepare contingency plans to ensure readiness for sustained growth and development.
It's also essential for Chinese EV companies to maintain their confidence, as their ongoing investments in research and development (R&D) and production, following intense competition in the early stages, have helped them build the capability and resilience to face challenges.
In addition, China's vast market potential, the continuous deepening of cooperation with other countries in this field, and China's irreplaceable advantages in global industrial chain collaboration will continue to provide strong support for the development of the Chinese EV industry.
Moreover, the irrational protectionist approaches of some Western countries may affect the development of certain industries in the short term, but such interventions are unlikely to change fundamental, long-term market trends.
Protectionist policies and high tariff rates may temporarily protect domestic enterprises in these Western countries, but they will suppress innovation and the motivation to carry out R&D, ultimately leading these companies to lag behind in the global market competition.
The EV industry is inevitably facing increasingly fierce competition, with companies from various countries ramping up their investments to capture market share. It is important for countries to take a rational and long-term perspective on fair market competition and its effects on the development and progress of the EV industry.
China has been actively promoting an open and fair competitive market environment, attracting the participation of numerous international companies. Tesla, as a global leader in EV manufacturing, smoothly entered the Chinese market, getting facilitation and policy support from China. This fully reflects China's open attitude toward foreign enterprises and investments, as well as its rational approach to fair competition in the industry.
China's rational approach to competition has significantly contributed to the healthy development of its markets and industries. This is particularly evident in the rapid and comprehensive growth of Chinese EV companies, such as BYD, which have established notable competitive advantages.
To maintain their position in the global market, these Chinese companies need to have a clear understanding of the evolving competitive landscape and actively enhance their technological capabilities and innovation to address challenges in both the domestic and international markets.
It is hoped that Western countries will reconsider their protectionist strategies and avoid further entrenching themselves in this misguided approach. From an objective standpoint, adopting a rational and open attitude toward Chinese EVs is likely to foster the healthy development of the EV industry in their own countries.
In contrast, protectionist tariffs will only lead to lose-lose scenarios and hinder the overall progress of the global EV sector.
The author is a reporter with the Global Times. [email protected]
