BYD Executive Vice President Li Ke: The U.S. market will not be considered for the time being

According to news on June 13, BYD Executive Vice President Li Ke criticized the latest US climate bill, the Inflation Reduction Act (IRA), saying that the bill will increase the cost of purchasing electric vehicles for American consumers.

Although BYD sells electric vehicles in the United States, Li Ke said the company is not considering expanding its expansion plans to the U.S. market. She wanted to discuss growth plans in markets such as Mexico, Chile and Thailand, and made it clear she was not interested in the U.S. market.

The Inflation Reduction Act aims to promote domestic electric vehicle manufacturing in the United States through tax incentives and financial support, but due to its preference for U.S. automakers and supply chains, BYD believes that in U.S. passenger cars The market is too expensive and inappropriate to operate in.

Li Ke said in an interview: "We must ensure that every step can be successful. I firmly believe that the IRA could slow EV adoption in the United States. ” She pointed out that because the Inflation Reduction Act prevents American consumers from purchasing the most “affordable” options, it may hinder the penetration of electric vehicles.

BYD has an advantage in batteries, which is its ability to Part of the reason for selling electric cars at lower prices. BYD is not only a car supplier, but also the world's second-largest battery manufacturer. China has an absolute advantage in the lithium battery supply chain, while the United States has been slow to increase its electric vehicle battery production capacity.

According to forecasts by analysts such as Morningstar and BlombergNEF, BYD is expected to overtake Tesla as the pure electric vehicle sales champion in the second half of this century. However, Li Ke expects Latin America to be the company's largest expansion One of the regions where she hopes to increase EV penetration in the region from less than 2% currently to 10% to 20%. Latin America has the potential to surpass the U.S. in EV penetration due to the Inflation Cut Act. The negative impact.

Not only Li Ke, Michael, executive director of S&P Global Mobility Consulting Robinet also said that the "Inflation Reduction Act" is unlikely to help increase the penetration of electric vehicles because it does not change the relative cost of electric vehicles, and cost is one of the main factors in U.S. consumers choosing traditional cars over electric vehicles.

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