By Nick Toscano
China’s biggest electric car maker is expected to sharpen its focus on growth in Australia, doubling down on efforts to bring in new vehicles and expand its dealership network, as US President-elect Donald Trump pledges to prevent Chinese brands selling cars to Americans.
President Joe Biden this year quadrupled tariffs on Chinese-made electric cars to 100 per cent. Trump has signalled he could increase imposts to 200 per cent on his return to the White House, to protect the US industry from cheaper imports.
BYD launched its Shark 6 plug-in hybrid ute in Australia last month. Credit: Jason South
The move is set to inflame trade tensions and make it “impossible” for Chinese electric vehicle brands to expand in the US, according to analysts, who expect Chinese manufacturers to pursue growth more aggressively in other markets.
EVDirect, the Australian importer of China’s best-selling electric car brand, BYD, said the US restrictions could present a silver lining for Australians shopping for a new electric vehicle.
“Australia is a very important market for BYD – it’s a mature, Western market, which has always been viewed as a really great opportunity,” EVDirect chief executive David Smitherman said.
“The silver lining … is the ability for the global BYD to be more focused than ever on launching new products in Australia.”
BYD has rapidly gained popularity since its launch in Australia two years ago, now ranking second only to Tesla on the Australian EV sales charts. The Shenzhen giant’s goal is to become one of Australia’s top-five automotive brands as it expands its product range and aims to double its local dealership network in the coming year.
Last month, it launched its first plug-in hybrid electric ute, the Shark 6, which will retail for $57,900 before on-road costs and is likely to snatch market share from Australia’s top-selling utes, the Toyota Hilux and Ford Ranger. More than 3000 Australian sales of the Shark 6 have been made in the past two weeks, the company said. In February, BYD plans to launch the Sealion 7 electric SUV.
“The great thing about Australia is we don’t have tariffs, and we have a significant number of new products coming,” Smitherman said. “Our goal is to have a product in every segment in Australia.”
The growing availability of BYD models in Australia, including some that retail for less than $40,000, has caused other major brands, including Tesla, to cut their prices, too.
Trump has vowed to impose heavy tariffs on Chinese companies.Credit: AP
Prateek Biswas, a transport and materials analyst at consultancy Wood Mackenzie, said Trump’s plan to maintain or increase the Biden administration’s 100 per cent tariffs on Chinese electric vehicles would thwart Chinese brands’ crucial plans to expand their US presence.
“The next question is really, ‘Where do they expand?’” Biswas said. “They will be looking at relatively lucrative markets, and there aren’t that many ... Australia is definitely one of them.”
Electric Vehicle Council head of legal, policy and advocacy Aman Gaur said Australian consumers could benefit if the US restricted electric vehicle imports.
“I think we can expect to see increased supply to Australia and quality electric vehicles in our market under $30,000,” he said.
The industry group expects the Albanese government’s coming vehicle pollution limits, which take effect from next year and bring Australia into line with almost every other developed country, to boost motorists’ choice of low- and zero-emissions models.
The limits, to apply only to new cars, are designed to reduce emissions by 60 per cent by 2030 by encouraging makers to increase imports of EVs or bring in more efficient combustion-engine cars, with penalties for those breaching their cap.
After years of sluggish growth, sales of EVs and plug-in hybrids account for nearly 10 per cent of Australia’s new car sales. Adoption of fully battery-electric vehicles has started to slow this year in line with global trends, which analysts attribute to the impact of inflation and cost-of-living pressures. Sales of hybrid and plug-in hybrid vehicles, which are typically cheaper than fully electric models, have increased.
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