BYD outsmart the European Unions massive anti-China EV tax
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- Äas pĹidĂĄn 9. 07. 2024
- BYD outsmart the European Unions massive anti-China EV tax
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The Chinese built a 21,000+ KM wall surrounding them from Barbar attacks thousands of years ago, this was a cakewalk for them to figure out.
And after they built that wall how many times were they over run by those same smelly barbarians? Building it and it being effective are not the same.
And yet, China couldnt make a ballpoint pen by themselves until 2017 (google if you dont believe me)... đ
Thatâs how they learnt, that walls donât work that well.
đ¤Łđ¤ŁHuzzah
@@clipwat1511 the only civilization that can surrive 5,000+ years. The Wall thwarted barbarians.
Don't forget about Uzbekistan. BYD started mass production of cars there two weeks ago. Uzbekistan has free trade agreements with the EU, similar to Turkey.
The other thing to keep in mind here is that BYD is also looking build up consumer preference and infrastructure in developing countries. Kind of a bottom-up approach with more affordable vehicles, whereas most EV makers have initially concentrated on more expensive vehicles in wealthier markets. This has tended to lead them to become the dominant NEV brand in markets with growing car sales, whereas EU car sales are on a long decline and US has been roughly flat for decades.
BYD sets up factories in countries friendly with China. If taxes, sanctions, or bans stop these BYD factories from serving nearby countries, they'll just focus on the host country, benefiting both China and that country.
Nowadays, countries are protecting their own interests, fair trade does not exist anymore. The EU forgets that China makes most of its car parts, so China might hit back with an export tax on those parts meaning EU made vehicles will become more expensive and china winâs again.
China's has thought about this strategy prior, a wave of quality EVâs wasnât a coincidence.
Just wait till countries start using humanoid robot labor to make almost everything. It will be a race to the bottom.
Any country that is behind in deploying robot labor will have to literally close its borders to all imports or their entire manufacturing capability will collapse when faced with lower prices than they can sustain.
The problem is western companies are competing with state backed companies in China. In the past when China was inefficient it was accepted as part of doing business with China. But now, China is funneling massive state support into their own Chinese companies that are A) destroying the Chinese market for foreign competition and B) allowing China to export (dump) products abroad that legacy auto makers have no chance to compete with.
As this will seriously hurt economies in the west, tariffs went up. Building the car in Hungary or Turkey instead of China does not enrich Chinese labourers.
Instead the Chinese corporations will be reliant on cars made abroad and supplied to foreign markets for most of their income. This is an ironic role switch from twenty years ago.
Ultimately, globalisation has failed too many citizens across the globe and the system is running out of steam. This is not the system Xi had in mind when he dumped billions of state money into Chinese EVs. It will dry up very quickly when Chinese capital is invested abroad and the proprietors have successfully found a way of exporting Chinese capital. While unemployment or under employment continues in China.
@@Alopen-xb1rb Indeed the early players in globalization are now seeing that their "winnings" are being encroached on as other players come to the table.
The early players are now trying to change the game or stop playing all together.
However this will all be moot when soon humanoid AI robots hit the labor pool. It will then be a race to see which country can manufacture and deploy them fastest and also has the massive supply lines in place. No longer will cost of labor or even govt subsidies be much of an advantage... it will be all about speed of deployment, supply chain, and scale.
@@Alopen-xb1rb
No the real problem is the world cried about climate change and China being the worlds biggest polluter
Now it cries about overcapacity in China
Maybe our richer G7/EU should be spending the money instead of complaining
Btw if you havenât noticed Even though their Central Government is cracking down in real estate speculation
Slowing down the economy?
The Chinese people have added 2.6 trillion to their savings in 2022
And 1.8 trillion to their savings for first 10 months of 2023
The Chinese Government is actually pushing their people away from investing in real estate, and to invest in technology/industries instead. (Whatâs 4 houses vs 5
This is where China leads the world in 37 of the 44 critical technologies of the future already
As they will pile even more money into these future technologies
My prediction is the Chinese Government will have to step in and regulate yet another overheated sector (technology) in the future
Where Blinken,Yellen & their successors will have to keep going to China to beg them not to dump their cheap high tech onto the rest of world
Most people have no clue whatâs coming, as they supercharge their exports with their new innovative high tech products
đ
JANUARY 30, 2023
3 MIN READ
China Invests $546 Billion in Clean Energy, Far Surpassing the U.S.
China accounted for nearly half of the world's low-carbon spending in 2022, which could challenge U.S. efforts to bolster domestic clean energy manufacturing
Nearly half of the world's low-carbon spending took place in China, according to a recent analysis from market research firm BloombergNEF.
The country spent $546 billion in 2022 on investments that included solar and wind energy, electric vehicles and batteries.
Scientific American
đ
Analysis: Clean energy was top driver of Chinaâs economic growth in 2023
Other key findings of the analysis include:
Clean-energy investment rose 40% year-on-year to 6.3tn yuan ($890bn), with the growth accounting for all of the investment growth across the Chinese economy in 2023.
Chinaâs $890bn investment in clean-energy sectors is almost as large as total global investments in fossil fuel supply in 2023 - and similar to the GDP of Switzerland or Turkey.
Including the value of production, clean-energy sectors contributed 11.4tn yuan ($1.6tn) to the Chinese economy in 2023, up 30% year-on-year.
Clean-energy sectors, as a result, were the largest driver of Chinaâ economic growth overall, accounting for 40% of the expansion of GDP in 2023.
Without the growth from clean-energy sectors, Chinaâs GDP would have missed the governmentâs growth target of âaround 5%â, rising by only 3.0%
CarbonBrief
@@Alopen-xb1rb
Btw last I read European companies based in China bring in 500 billion in Revenue every year selling to Chinese consumers
Chinese should expect these types of trade barriers because the EU still takes its cue from the USA
I wouldnât trust the EU to go after these Chinese factories in the EU on national security reasons, threat, interest, concerns etc etc etc
All this as China only sold 300, thousand EVs last year in the EU. That is all Chinese EVs including BYD
Where 10 million EVs are expected to be sold in China this year a jump up from 8 million EVs last year
The irony to this protectionism/national securityâŚ. is 30 million cars are sold in China each year.
That means 20 million of the cars sold, will still be ICE vehicles many of them will be made by European or American legacy car manufacturers
It is well known this free-trade-area between EU and Turkey. BYD just does take advantage of it!
Nice chess play by China, if Turkey is excluded from the free-trade-area then Europe becomes even more isolated as it already is (after the Ukraine war broke out). Turkey is already a BRICS member?
It won't make much difference, if the EU determines that products coming from Turkey are being subsidised to the point of dumping then tariffs will be applied. Why? Because part of the agreement Turkey has with the EU as a part of the free trade agreement is that Turkey won't allow dumping. This isn't "one magic trick that the EU hates and doesn't want you to find out about".
@@TankEnMatelast I read European companies based in China bring in 500 billion in Revenue every year selling to Chinese consumers
Chinese should expect these types of trade barriers because the EU still takes its cue from the USA
I wouldnât trust the EU to go after these Chinese factories in the EU on national security reasons, threat, interest, concerns etc etc etc
All this as China only sold 300, thousand EVs last year in the EU. That is all Chinese EVs including BYD
Where 10 million EVs are expected to be sold in China this year a jump up from 8 million EVs last year
The irony to this protectionism/national securityâŚ. is 30 million cars are sold in China each year.
That means 20 million of the cars sold, will still be ICE vehicles many of them will be made by European or American legacy car manufacturers
Like their partner Toyota did years agođđđđ
tesla might have been better building in turkey rather than in hateful germany.
Technically, Turkey is a special case. Turkey is in the European Customs Union, and has preferential agreements with the EU. I think there are similar preferential arrangements with the recently separated UK. Morocco has some trade agreements with the EU and these agreements cover automobiles subject to duty-free trade into the EU, but there are major differences with Turkey's situation. The main reason BYD invests in Morocco is natural resources because thats facility is a battery production factory! They have investments for car manufacturing in Hungary and this is part of their strategy to avoid customs duties. Turkish investment has benefits not only in the EU but also in Turkey and some additional countries!
Turkey is definitely not part of European Union!đ
Turkey is definitely not part of the European union. Turkey doesnât fulfill many of the requirements!đ
@@user-nf4st5kn6l EU Custom Union is different.
This is common, and basically what the EU wanted, they want jobs and tech here. The tariffs are only until November anyways
Basically EU does not have the right to "want" anything, for it is USA that decides what EU can or cannot have, in the first place
@@verypleasantguy USA is a friend and partner with the EU, China is emerging, but making mistakes due to arrogant leadership. EU is 27 independent and sovereign countries working together.
None of those jobs or tech are in the EU though. Only Hungary is an EU member, and it's a periphery one at that.
@@Gustav_Kuriga Hungary is an EU member, so it's EU jobs, tech gets transferred. Just like how China got solar, chips, etc over the decades.
@@sebyst7907 In other words, by having their factories at the peripheral regions of EU, the Chinese are reshaping the power center of the EU, from the Western Europe, to places like Hungary, Morocco, and Turkey
I used to work for a USA company that had to make medical devices in China in order to avoid massive tariffs. We would make the machines in the USA and ship the parts to China for assembly so we could call it China made. This is not new, they are just copying our playbook. I think tariffs are terrible for European and USA consumers. We need to invite competition and out innovate if we donât want to end up like Cuba.
Yes the eu and USA seem never to care about their own people the customers who they make goods grossly more expensive than they needed to be. It is not going to save local industry unless it is well on the way to catching up and being able to stand on it's own with no tax barrier defending them. Western car makers are still making 'steam engines' effectively, way way too late and behind.
It is not going to happen if you have access to make easy money in Wall Street.
That's nothing new, in EU a lot of companie s are doing this only to be "made in germany" or to be "made in sweden". They assemble 99% of the product in a cheap labor country, and they are imported as subassemblies. They add a keyboard and mouse or something easy to mount, a few labels and it has been manufactured in germany!
EU policy is working as intended. It's getting China to build more of their manufacturing in the EU's trade area. That means jobs and income staying in the EU.
BYD were being sold in Europe for more than twice their price in China even before the tax. They can afford it.
Apparently only in Belgium.
All we see is BYD commercials, no cars.
If you have to pay THAT much, Tesla gives more value for money.
57k euro for the seal, sorry but I can buy a bmw for that
The Dacia (Chinese underneath) and mg are a lot more popular, I donât know how many cars they sell but for evs Tesla is still number 1.
Overall the most popular brands in my country are French( they are âcheapâ) then German cars, despite what everyone says everyone still wants a bmw or a Mercedes in my country đ
@@santostv. Tesla is exactly known for quality either and have been overtaken by BYD is terms of selling numbers
@@sobanoodlez9372 Were did I mentioned quality???
I said most still prefer cars with European car badges and still see bmw and Mercedes as premium brands.
Best selling evs in my country 2023 are Tesla model y,Tesla model 3 (American), bmw i4,Dacia spring (Chinese underneath),Renault megane e-tech,Peugeot 208 e,Mercedes eqe,volvo xc40 recharger (owned by Indians tata),Volkswagen id3,mercedes Eqa,cupra born,vw id4 ect
How is this any different or worse than what China did to allow EuropĂŠen or US brands to sell in China?
Btw, they create jobs in the EU and neighbouring countries, leading Turkey and Morocco to become more prosperous and stable.
Itâs a win-win.
Italian shoes and handbags made in Italy with imported Chinese workers who spread CV? Belts n roads.
Its much more difficult as a "Westerner" to setup a business in China vs the EU or US - been there done that. China make it increadbly easy for them to export to other countries but if other countries want to export to them its risky and difficult with many loops to jump through unless they need or want it.
It will decimate the union labor, slow to change, German and French auto makers. Maybe some can survive but I doubt it.
@@nickmcconnell1291 ultimately it will destroy the EU if that happens. There is already some backlash, put recession into the mix and offshoring and riots will start eventually. The EU needs to be careful of its preferential treatment.
@@houseofhemp269
What most people donât get?
Is yes in âmostâ cases when you go to China to sell into their domestic markets you have to take a Joint Venture (JV) partner
And in âmostâ cases when you go to China to open up a factory, and export those goods back to your country you donât have to take on a JV partner
That means those trade deficits you hear about with the EU is mostly EU/US multinationals making the lions share of the profits exporting their products from China to the EU
Chinese companies mostly sell their goods and services to their Belt and Road Country partners
While last I read European companies based in China bring in 500 billion in Revenue every year selling to Chinese consumers
Chinese should expect these types of trade barriers because the EU still takes its cue from the USA
I wouldnât trust the EU not to go after these Chinese factories in the EU on national security reasons, threat, interest, concerns etc etc etc
All this as China only sold 300, thousand EVs last year in the EU. That is all Chinese EVs including BYD
Where 10 million EVs are expected to be sold in China this year a jump up from 8 million EVs last year
The irony to this protectionism/national securityâŚ. is 30 million cars are sold in China each year.
That means 20 million of the cars sold, will still be ICE vehicles many of them will be made by European or American legacy car manufacturers
Audi have been manufacturing cars in Hungary for years, in GyĂśr. So itâs smart to build a factory in Szeged, Hungary.
Ive seen the new audi models, they could just wait a few months and buy a discounted audi factory.
Win-win situaton for both China and Europe.
at the end of the day, consumers are the winners!
Never get seen a BYD on the roads in the UK.
BYD and other Chinese companies in any industries put up factories and have them up and running extremely quickly. We could have gotten car manufacturing back in Australia, but both state and federal governments stuffed around BYD. Turkey has their own car brand TOGG and one of the Fords I rented about a decade ago in the UK was actually made in Turkey.
Dont think this is about the EU.
BYD says this proposed factory will produce 150K cars a year.
Turkey sells nearly a million cars a year with a population of 90m, add to this 5 or 6 surrounding smaller countries around her. 150K cars a year factory probably will be serving this region alone.
Bingo. As long as trade relations are good they will be happy to sell to the EU market but the chinese are not dumb enough to put all their eggs in Ursulas basket
The scope of the manufacturing that has to take place in the countries you mention is actually VERY metodiculously defined to ensure enough of the process really takes place in the country. There are incredibly detailed lists of what has to be sourced locally, which parts can be pre assembled, which parts can be assembled into modules etc (worked for a company doing this for a while with cars that were to be built in India where complete sets of parts were shipped from CEE) to avoid taxes being levied. This is done because the incentive is to have the manufacturer create value, jobs/economic activity inside the market. And yes, doing that in Turkey, Marocco etc rather than just in China IS actually policy. It still makes the manufacturing more expensive for BYD and it has a positive effect on EU manufacturer's supply chains - they themselves also build cars and source parts in these countries.
What itâs the most scary plan itâs that BYD have plans to start with solar powered charging network with those big BYD batteries in which they can storage el. And price per KW for charging itâs gonna be a joke đłđłđł. Also they have plans to invest so much money close to EU countries in car factory in Serbia. đłđłđł. China have owned steel factory in that country, then copper mine , and a lot of other in that small country.
What BYD have not bargained on is political choices of EU consumers, who may not want to indirectly fund PRC government activities in Taiwan and elsewhere. And that's assuming that EU will not impose sanctions on Chinese-owned companies in future..
if Europe is going to be missing out on tax revenue as a result of these workarounds .. guaranteed they will implement other tax schemes.
The tariff is probably just to please the US. But what EU really want is to have the factory in Europe. Not sure Morocco, Turkey and Hungary are where they expected.
Morocco is the sleeper. Destined to become Africa's manufacturing powerhouse
It won't make much difference, if the EU determines that products coming from Turkey are being subsidised to the point of dumping then tariffs will be applied. Why? Because part of the agreement Turkey has with the EU as a part of the free trade agreement is that Turkey won't allow dumping into the EU. This isn't "one magic trick that the EU hates and doesn't want you to find out about".
So BYD hasn't out-smarted the EU, they're going to do what the EU wants which is to manufacture in the EU and employ EU workers.
Exactly. This guy is very ignorant.
Almost everyday, we read investments in the EU to supply the "Chinese" factories in Europe.
Yesterday, in Spain, it was announced another gigabattery factory that will create more 3000 new jobs in Caceres
It is so sad how ignorant are some people when discussing the EU: ignorant and morons
Turkey isn't EU, what are you even talking about
not in eu but in eu free trade countries and as long as byd make $ - win! at the end of the day, consumers are the winners!
Correct, and many EU politicians will be happy with fewer economic migrants from Morocco when BYD employs locals there.
Exactly, we want jobs in our eu market or if not in the European continent.
Byd is still irrelevant in the eu.
Morning mate
My VW has 150 000km, as good as it was 9 years ago, will not buy a new one until theree is peace in this world.
BYD advertising all over Euro 24 lol.
Not just Physics, but also Business.
For every action there is an equal and opposite reaction.
1 key element is missing from your tariffs videos. Technically extra tariffs are already in place BUT they are NOT "active". It means no one has to pay it, yet... Customs are counting the amount but it will be due to pay in November. Until some manufacturers asked for revisit their percentage like Tesla did it. So currently tariff amount is just COUNTED and until November anything can happen...
There are countries in the EU that have also made similar deals. Nothing new.
BYD is doing nothing new or unexpected Europe welcomes any investment a Chinese company might want to make. And unlike China they dont require that foreign companies are 50% locally owned
Itâs called a tariff.
"The big boys are coming"
So the Peugeot, Renault and other European car manufacturers in Hungary, Morocco and Turkey will probably be closing in a few years once BYD starts production in those countries. What can the EU do!!!?
this is literally europe outsmarting byd. It made byd invest in eu regions
BYD will be next toyota, it make sence for them to produce locally.
If it's so good then why doesn't India allow BYD to produce their car locally in India ?
I'm not sure where Morocco fits into the plan... but Turkey have a free trade agreement with Europe and cheap(er) labour - so that makes complete sense... until the EU clamps down further to protect it's French and German car manufacturers that-is.
they only plan a few 100k productions, probably just good enough for the region not betting too much on eu, if eu add taxes, they can leave eu out.
Protectionist tariffs have usually back fired such as the 300% tariff against Bombardier that Boeing lobbied for just resulted in a dollar sale to Airbus so that the C series could be assembled in the States. Sure you can hurt the foreign companies but ultimately you hurt yourself and you don0't always get the advantages that you desire.
However, it should be noted that these tariffs against Chinese EV's are to insulate the fledgling EV manufacturers in the YS and Europe from the rapid price collapse in EV batteries devastating the Chinese EV companies from epreading outside of China. Cinsiderations for long term consequences if such tariffs might simply be ignored for the short term gain of buffering the price collapse in China. The tariffs are after all "protectionist" measures.
Can you imagine if BYD uses the plant their building or have built in Mexico to sell vehicles in the US? BYD has one vehicle that sells for $11,500 US, best I remember, that gets good reviews here on CZcams. If some ole workinâ class boy in the state of New Jersey complains about the price of EVâsâŚand thatâs why heâs not getting one, tell him with the federal government kicking in 7.5K and soon NJ will kick in up to 4KâŚthat means the car will be FREE, since NJ also doesnât charge sales tax on EVâs.
Americans don't want cheap cars, they have to make up cheap cars in volume which never happens so they get cancelled, just like the Yaris, great car but not popular.
They won't want to sell cheap cars here because it wouldn't work. Even if it was cheap it wouldn't be, Dolphin is about $30,000 in the UK plus any car that qualifies for $7500 is going to be more expensive, that $7500 is to make people think they are getting $7500 off but when it was going to end, they announced $5400-7000 price drops on the cheaper models from Ford and GM, Tesla would have had to do the same
No it wonât đ
@@niolss OKâŚdo the math with me: Car cost 11.5K. You and all the rest of taxpayers are kicking in 7.5K. NJ is kicking in 2K as of today and another part of the program in the fall will kick in another 2K for a total of 11.5K in incentives. From what I see on videos and the comments I read, workinâ folk donât like EVâs cause they cost too much. Even when a partial sales tax kicks back in this October, the car is virtually free. Even some ole boy working at Auto Zone who lives in his parents basement can afford a brand new carđ
@@justinr9753 OKâŚI thought that was the issueâŚEVâs were too expensive. I have to wonder, if the government said pick out an EV on usâŚfor free, would the working class say no out of protest for their friends who are auto mechanics? Seems like the Volkswagen Beetle did pretty well when I was a kidâŚand it was cheap. Unless I donât understand your point or donât understand the law, the $7,500 doesnât have a floor but it has a ceiling. When I was at the Tesla showroom, they said the max on the Model X had to be under 80K to get the $7,500.
@@justinr9753 Americans donât want cheap cars? Then why is Chevy Trax, Nissan Versa and Hyundai Venue, being sold ABOVE MSRP? Because demand is high for cheap cars, dealers have less margin in cheap cars and thereâs a whole bunch of VERY poorly educated people in this countryđ¤Ł
they can't impose tariffs on turkey and Hungary, or it would collapse every single trades of both countries with the EU union
I Just Love BYD my Truck is Beautiful Fast n Big
The car you are driving now was probably produced in Turkiye. There are Honda, Toyota, Ford, Hyundai, Renault, Fiat and Mercedes factories in Turkiye. So they can make quality production...
I don't think this will be that easy. There are specific rules, when product is being considered as produced in Europe and not being subject to tariffs. I don't think just assembling cars from parts imported from China will do it. They will have to do much more locally.
BYD is may be aiming for the lower end market in Europe than the higher end market, given how narrow European streets can be. Most likely models will be initially the Seagull hatchback, Dolphin hatchback and Atto 3 crossover, maybe the Seal sedan.
â¤
While the new factories are being built, taxes will be collected from Chinese car sales into the EU. Then, when the factories are completed, the EU will move the goalposts to introduce new taxes that will impact these new assembly plants (to some extent), while collecting more taxes from BYD that they would have previously. At the same time, EU consumers will have more choice in the market, and there will be plenty of demand to drive supply from all directions.
Hungary is in the EU. Audi, Mercedes and Suzuki had been building cars there for decades, BMW is building a large plant.
consumers are the winners!
BYD should copy Tesla's strategy of combining solar panel sales with battery storage for homes and businesses. BYD can do that for less than Tesla as well. And they can buy a solar plant pretty cheap these days given the overcapacity.
This is one reason why the UK left the EU. The EU is corrupt and run by large conglomerates for larger company profits. Huge discounts go to Turkey and they are not even members of the EU. Same with Morocco (in exchange for France raiding the fishing around Morocco). Ford car factory shut in the UK and moved to Turkey with an EU loan. Madness!
They also had far more issues. UK had a decent position in Europe, and ultimately was better off. A country that would benefit from leaving would be Italy.
The UK left the EU because billionaires fooled those dumb enough to believe the Eton Elite. Had nothing to do with corporations in Europe.
Wowđł what a smart and unexpected move đ can a human being actually be that smart? đŽ are these Chinese guys humans or maybe they are aliens?đ˝
Not completely off topic but seriously needed discussion.. What about long term software / updates / firm wear support and future data improvement support and implementation? Scenario... you buy an EV new or used.. it's now 10, 2,30 years old but it still runs great looks great and with the original or a replacement battery you want to continue to drive it and have fresh software... will this be possible ???? Via the OEM or an after market provider (s) ?
ICE cars seem to be the same nowadays, software driven.
â¤ď¸ it đđđ BYD
BYD is doing the same thing in North America / USA, by going to Mexico to built their vehicles and try to avoid tariffs.. đ¤
IMHO More jobs and wealth generation would be great for Turkiye, it's struggling hard with inflation and economic pressures atm AND it's a member of NATO right on the border to the current conflict in UKraine, so anything that improves the stability of Turkiye AND relations with China by giving them an 'out' to a potential trade, or god forbid, actual war is *good for everyone* involved, including rest of Europe.
Also placing a battery factory in Morocco could be a great idea, since there's already huge renewable projects there, including the crazy 3000km HVDC interconnector to Britain and massive PV & CSP farms.
BYD's battery tech is pretty much a match made in heaven for projects like these đ(If they can keep the corruption to manageable levels)
We will continue to call it "Turkey" regardless of how the locals wish to spell it. Rather like us calling Deutschland Germany.
@@rogerphelps9939 Not sure what this has to do with import tarifs, free trade or national security but OK, you do you.
As long as we both know what country we're talking about, I don't really see an issue here.
The EU gets inward investment, BYD gets to sell its cars, European customers get cheap EV's, Orban gets to cosy up to another ruthless autocrat. Everyone's happy.
Only loser is USA.
And anyone that want customers to pay more
Ruthless autocrat? Ursula von der Leyen doesn't do EVs.
Ruthless autocrat?? Who are you referring too
Hungary gets investment. EU really dropped the ball here
â@@jgarbo3541 you're ignorance is on display
Good. I hope it brings prices down significantly in the EU.
How is this legal? Will the EU allow this?
Hope to see some affordable evs next 1-2 years in eastern EU, those prices above 20k euros are not cheap and Dacia Spring (the only sub 20k) is a joke of a car in comparison with even the Seagull. The LFP battery is most I am interested on, longer life cycles and better safety, I really can't understand why Renault doesn't use this type of chemistry...
It's not ingeneous at all. The EU can simply close the loophole by implementing a law that says, any foreign company located in an EU country will be taxed near the same high rate of tax, as if their products were manufactured in their home country. The unions can ensure that goes forward and governments will accept that into law. There ya go. Fixed. If they try any other smart ideas, they can also be fixed by law. đ¤Łđ¤Łđ¤Ł
That would be strictly illegal tho.
The EU is different from the US in that we respect our laws.
@@pedersteenjensen8484 EU is no different than the US. Stop kidding yourself. Once auto unions in France, Germany and others suffer from Hungary sucking up to China. The EU will adapt or dissolve. Protectionism is on the rise and the EU will need to appreciate what its citizens want and not just its elites.
@@Alopen-xb1rb Ehh... What makes you think EU citizens want costlier cars? That's just straight up a weird statement.
People generally prefer to pay less if possible. The elites on the other hand would really like to protect their companies...
You got it the wrong way around
The Eu will call it shamufacturing and tax them any way
this is why they are only planning 100ish 1000, even without eu, the region can easily consume a few 100k.
Okay so BYD can get around some of the tariffs from 2026 but it wont be for every car they export and what do they do from now 2024 for two years when the EU tariffs apply?
BYD anticipated the tariff at very beginning, they still making more money with the current 27% tariff comparing china market
My friend,Firstble,Have u checked to Map? Turkiye is already part of Europe.That Thracia part is bigger as size of Land,population and economy than many European countries. Secondly Have u hear to Custom Union of EU? Turkiye is member of Custom Union of EU,since 1996.
đđđGod bless BYD
It is needed, because these cars fall apart fairly quickly after leaving the showroom...
â@@stefan2796
If that the case then EU and US have absolutely nothing to worry about these Chinese evs coming into their market. Surely there's no need to impose huge tariffs on them. No one will buy such crappy evs. Biden is so spooked he rushed to impose 100% tariff protection even when they are not for sale there. Crazy isn't it?
Scuse me while I vomit
Cheers mate
The countries mentioned have a lower labor rate cost and can get cheap Russian energy, just like in China.
What's so genius about it. The EU is getting what it wants, Investment and jobs in the EU. I'd say the tariffs are more genius than the "evasion".
Not really as now China will increase import taxes on goods coming into Chins from the EU making them less competitive. Making other companies selling the same in China more profitable as market just increased!
Only Hungary is in the EU, and at odds with the Western countries of the EU. Other than that, none of the countries mentioned are in the EU.
Turkey and Morocco are both outside the EU
Everyone likes to ignore history. The "Chinese Miracle" was built on tariffs. Massive tariffs that the Chinese government imposed on foreign producers as the price of gaining access to their promised rich market. That market has not proved to be as rich as promised. Most investors in China began to rob their own nations and economies for the customers to buy their wares. It has been a race to the bottom. European markets have been getting poorer while Chinese markets don't get richer.
Assembling is creating jobs but not many. It will bring VW, BMW and all the other EU based car manufacturers to their knees.
What about the US market? Is there a way around US restrictions?
no way. tariffs is the just the start, they will name BYD as a national security threat when necessary.
Mexico đ˛đ˝
quick and easiest way, if the us big autos will partner with byd
Itâs hilarious! Politicians and economists know that economical Chinese BEVs are essential for the EU in their transition to the new energy world yet they need to enact these policy changes to respond to their electorates. These openings are ignored to keep things realistic and practical. All a political show for the naive!
The beauty of it is that if the EU goes down the stupid taxation/tariff route and not allow this BYD move to sell cars in Europe, BYD can use Hungary to cover Russia, Belarus, and other friendly nations, will be able to export to the US, Middle East, and Africa. I was hoping that the Europeans would free themselves from being the US concubine, but it looks like they are spreading it even more!
Yeah, the EU needs to build some backbone but it wonât happen when Ursula keeps getting laid by US in her next term.
The cars will be built. The people will buy them.
consumers will be the winners đ đ đ đ đ
First!
Looks like a BYD promotional channel here....
Ursula von der Leyen has left the chat.
70% inflation in Turkey...concerning?
Sounds like a very risky 'strategy'. All of a sudden the agreement with Turkey will be renegotiated and then BYD is sitting with a factory in a high risk market such as Turkey (think their currency, political risk etc.). This is not that different from the US-Mexico 'back door' that BYD was going to exploit and that the US closed the door on. EU will do the same. Same goes for Morocco. But lets see, maybe BYD will have great success.
The big difference with BYD is that they are building and pricing vehicles that can meet the needs of developing markets, in addition to wealthier markets. It isn't just a one way street to the EU, but rather a crossroads that can send cars to a wide array of markets in EMEA. So, if EU protectionism closes the door on Uzbekistan, Morocco, Turkey, Hungary... BYD can still sell in other growth markets.
@@larryevans6739 Lets see. The Japanese and Korean automakers have been in Europe for decades and still make up less than 20% of the market share, combined. Both Japan and Korea have sold both cheaper and more expensive cars to different markets and still not been particular successful in Europe. And this is when both Japan and Korea are close allies with Europe and are known for producing quality cars. Not something China is known for. So lets see if the Chinese can somehow be more successful.
@@PelleGIT In case you haven't noticed, Toyota is the largest automaker in the world, regardless of EU sales... the world doesn't revolve around the shrinking European market.
@@larryevans6739 Exactly, BYD is aming to take over toyota
@@larryevans6739 In case you didnt notice, Toyota had access to the US market which Chinese car makers dont. You cant lose both the EU and the US. Its never a winning strategy to piss off the world like China is doing.
As others have said, assembly in Turkey is not enough to avoid EU tariffs. A high percentage of parts value will need to come from EU for the cars to qualify as EU production. Unfortunately, Sam has used poor sources to create this dodgy video. BYD will certainly care and will need to create value in the EU with original manufacture, and if Turkey wants a low value spanner assembly plant, so be it. (Turkey is certainly enough of an economic basket case to take anything its offered).
BYD says the cars made in TĂźrkiye will have enough added value to be exported at some point. At which point is their decision. Turks don't care about the exports but about the competition it will create in the local market.
I am a Turk and I have a company that has been providing raw materials to automotive companies for years. I think you are underestimating Turkey :) There are many companies producing auto parts here and these companies produce parts for Mercedes, BMW, VW, Ford and even Tesla.
Perfect plan until... Country of source for part content comes into play.
That's not "Outsmarting" anyone. Why do you think that you need to resort to Clickbait to get viewers?
Unfortunately, CZcams is forcing this nonsense on content providers if the want to get paid.
BYD is the scariest chinese country, and they got a tariff of 27.5. tesla got a lower rate for cooperating with europe, they got a tariff of 30.5. do these numbers make sense to anyone in europe?
Marco and Turkey will likely be taxed in the same way. Not smart
So basically the Chinese manufacturers is squeezing out traditional EU manufacturers outside of EU thereby significantly reducing their sales while in china their main market is also experiencing declining sales. Keep this up for 1.5 yrs & the traditional manufacturers will go bust because they can't sell their cars outside of EU while Chinese cars are flooding EU. Serve Ursula right...
Who's squeezing the Europeans? The Chinese?
Look how they flock in droves to open factories in Europe
European cars will still sell well due to their branded styling and identity so they should not worry too much. They just want chinese to setup factories in Europe and transfer their EV technology.
I think chinese cars will be the death of the french brands, as well as opel and perhaps Volkswagen. High status brands such as mercedes, bmw and Porsche will probably survive
BYD outsmart EU - what a stupid assumption. There are plenty of ways to pinpoint exactly who is hitby tarrifs.
Having factories outside but in close proximity to Europe won't necessarily allow tariffs to be circumvented. And, unless the countries actually have free trade agreements with the EU the tariffs will likely still apply. Turkey probably does have free trade arrangements with the EU, however.
Still, this is all just so stupid. BYD would be happy to invest in factories in Europe (they are already doing so in Hungary). BYD is a rapidly growing company - it needs to build new factories otherwise it becomes production constrained. So, why go through all of this tariff horseshit when none of it was necessary? BYD wants factory capacity in Europe. BYD can't destroy the European car industry. On the contrary, it wants to be part of it. European governments are failing their citizens when they fail to set some sensible ground rules for companies like BYD that are seeking to set up automobile production operations in Europe. The situation at this point is completely ridiculous.
When the BYD factory opens in Turkey, they will have to put 55% of the car parts made in Turkey or/and in EU or they will pay tariffs as if the cars are made in China
This guy, the video's author, is one deep ignorant how the car markets work around the world
You think byd will be popular in Europe when they cost more than Europeans competitors and Tesla is the best selling ev, we want them to create jobs for Europeans in exchange they can enter our market cheaply, the Dacia spring is made in China and itâs cheap, mg4 is also made in china and is only a bit more expensive, Volvo is owned by the Chinese and the ex30 is made in China, the new smart #1 is Chinese, new mini ev is based on a ora cat ect.
Still the best selling cars have a European badge.
They copied strategy from Toyota đđđđđđthey build the Coralla in Turkeyđđđđđ
Governments everywhere should be subsidizing solar power, EVs, etc, rather than the opposite, adding taxes to everything green!!!
USA are not only using tariffs, but are also still giving massive subsidies to the fossil fuels industry. Their government is sold out and worthless.
The EU has been a lot more reasonable than the US with their 100%+ tariffs. But the rules will become more stringent if this becomes a problem. Just assembling in Turkey will no longer be tariff-free. How do you think the US would/will react when China tries to go through Mexico?
Trump has already said he will not allow Americans the freedom to buy cheap EVs built in Mexico.
old game. recently indonesia imposed 200% tariff on china made ev. soon, chinese ev brand reveals plans to build factory in thailand to make use asean trade zone to sell across asean countries including indonesia. in an odd way its win-win, one asean trade member gets a new factory and jobs and kind of 'forces' china ev to standardize implementation of ev sales&support infra across asean countries to make it viable setting up factory in one of its member which will reduce ev sales and service price.
BYD is also building a plant in Indonesia.
give and take, win-win, not zero sum - byd is in business to make $.
In the US, if Trump is elected and his VP is Marco Rubio, then Marco's three new bills in the Senate basically state that any car manufacturer headquartered in China will be tariffed $20,000 for imported cars unless fully made in the USA. So Mexico and Canada would be tariffed. It sounds stupid because stupid is as stupid does.
Rubio is sidelined.
@@rais1953 I hope you are correct. Two months ago, the Mexican government told Chinese car makers that they would not receive incentives to build plants in Mexico. The press says the US government sent messages to China through Mexican officials warning them of pending tariffs on Chinese cars made in Mexico that are shipped to the USA. Rubio's $20,000 Chinese car traffic bill is the only bill sitting dormant in Congress. The press also said Chinese cars made in Mexico would not be eligible for $7,500 rebates, unlike other EV makers made in Mexico.
Our experience of building a factory / warehouse in Morocco was a disaster of corruption, forced local ownership / involvement , theft, local
politics and eventual catastrophic loss. Never again. Beware of Morocco any entrepreneurs.
nadie va a poder robar nada a China, el pais mas tecnologicamente avanzado del mundo.
@@VostockR Chinese has been building everything and everywhere, even in the most difficult places in this world, they have the knowledge and experience.
Yeah, but those factories will produce cars end of 2025 or 2026, so...
Smart chinese
1:20 So BYD, a Chinese company avoided paying even a single Dollar to the EU in taxes?
Well, to do that they'd need to do nothing. Because neither country uses dollars.
And also, there is no tax. They're tariffs. :p
Im pretty sure there are customs to pay, just like for my led butt plugs i get on aliexpress.
@@slavko321 Wouldn't you be paying Duties over your led butt plugs from aliexpress, rather than taxes? :p
(get it?)
does Europeans care about the tariffs ? they are very rich like the Americans
Or was it the EU plan all along for BYD to build in Europe?
No. The EU will now have to play another game to keep the Chinese out. And help "rogue" Orban in EU??
We want BYD SEA LION 7 in EU A.S.A.P
smart and brilliant china, as always.
Vomit
@@MookMineola eat your little heart out
thanks
"European" manufacturers have factories all over the world as well. Nothing new here, so, good for BYD.
They are going to do the same thing in Mexico. Will Americans cross the border for jobs in Mexico?
This is to the "viking car expert":
"Chinese battery maker Gotion plans to build energy storage plants in Spain
Lei Kang"