For some people, EVs are giving new meaning to the label “Made in China.”
When the White House announced it would increase tariffs to 100 per cent on Chinese EVs, it censured China for “flooding global markets with artificially low-priced exports” and “intellectual property theft.”
Many North Americans have bought into the idea that China’s manufacturing power is driven by outsourcing, cheaply producing—or knocking off—North American designs. But those who have driven China-made EVs or visited their factories note that their auto industry is different from other technology we import. China’s EV makers have been experimenting with new innovations like sodium-ion batteries for years, without much prompting from Western rivals.
“When it comes to EVs, the entire supply chain from A to Z, from the design, engineering, software… China doesn’t have to rely on the West,” said Philippe Rheault, director of the China Institute at the University of Alberta. Rheault pointed out in particular the scientific chops of leaders at BYD and battery giant CATL.
“Some of the most hard driving, innovative technology and business leaders in the country ended up in those areas.”
When he toured a BYD factory, he noted that those vehicles offered a different driving experience than, say, a $90,000 electric sports car made by California’s Lucid Motors—but nonetheless impressive.
Toronto resident Robbie Liang said that the price point of cars he looked at in Nanning, Guangxi, this winter were competitive—but what ultimately struck him were the unique features, like Nio’s battery-swapping program, or GPS programs that can tell you how long you’ll be waiting at a red light and what signal you’ll get at the next few intersections.
“For sure, it’s comparable to luxury brands,” said Liang.
On the other end of the price spectrum, BYD’s Seagull doesn’t have a groundbreaking battery range, at just 305 km. But starting at less than US$10,000—or even at 100 per cent tariffs, at US$20,000—it’s hard to find much better on the market. Even on the used market, I can almost count on my hands and feet the number of used EVs on CarGurus in Canada with a range above 300 km and a price below $30,000.
“What does the rise of the Chinese [automakers] mean for European, U.S. and Japanese makers? I do think it’s a bit of an existential risk for them actually,” said David Winborne, senior portfolio manager at Impax Asset Management who focuses on the EV sector. “If you look at the BYD product lineup, they’re making really good cars for an incredibly low price.”
Despite the White House’s new trade hurdles, China’s automakers are gaining momentum on several fronts. Chinese luxury EV brand Zeekr just went public in New York with plenty of investor appetite. Berkshire Hathaway-backed BYD successfully launched its Shark hybrid truck in Mexico after surpassing Tesla as the world’s top-selling EV maker earlier this year. While Canada has scared off Chinese investors from several battery-metal investments, firms like Zijin Mining are still finding ways to profit from the downfall of Canadian copper giant First Quantum.
Most Canadian auto imports outside free trade agreements face a 6.1 per cent tariff today. Canadian officials said this past week that “everything is on the table” after the U.S. tariff announcement, and that Canada is working with the U.S. to ensure it “will never be a backdoor [for] China in the North American market.”
At a conference earlier this month, Honda Canada CEO Jean Marc Leclerc was asked if he’s concerned about BYD entering the Canadian passenger vehicle market.
“Of course it’s a concern for us. It’s also a concern for the government. It should be,” he said.
Read Shift—The Logic’s authoritative weekly newsletter on automotive technology industry news—for more; and if you know someone who should be reading it, they can sign up here.
