Chinese electric vehicle (EV) manufacturer BYD is making significant inroads into the North American market and could soon expand into Canada. The largest Chinese EV maker has already entered the Mexican market, and this has been officially confirmed.
BYD and Uber have jointly released a press statement announcing a new partnership. This collaboration offers Uber drivers discounted pricing and special financing options on BYD EVs.
New Partnership Milestone
The aim of this new partnership is to integrate 100,000 BYD EVs into the Uber network. This will be a significant milestone for BYD as it navigates accusations from the US and Europe that its products are excessively subsidized by Beijing. EV manufacturers in the US and Europe feel threatened by the affordable offerings from Chinese EV makers, with BYD being a leading example.
Chinese companies provide some of the most affordable, advanced, and long-range EVs. BYD already has a global presence in the Middle East and Oceania. While it does not currently sell passenger vehicles in Canada, it does sell buses there, as well as in the US.
Challenges and Opportunities
At present, the stringent 100% tariff regime for Chinese EVs makes it impossible to enter the US market directly. However, BYD already sells its cars in Mexico, and Canada is on the brink of joining this list. It's also feasible for BYD to make inroads into the US market through Mexico or Canada, as there are no tariffs on vehicles imported to the US from these countries. Nevertheless, regulations are in place to prevent BYD from simply dumping its vehicles in Canada with the intent of entering the US market. According to the US-Mexico-Canada trade agreement, at least 75% of the value of such vehicles must come from parts and materials sourced from either of the three countries.
Future Implications
It remains to be seen how the US government will react, either directly or indirectly, to BYD’s potential entry into the passenger EV market in Canada.
