BYD spearheads Chinese electric car push in Australia, a friendlier market
By Stella Qiu
SYDNEY (Reuters) — BYD (SZ:002594) and other Chinese automakers are bringing new electric car models in droves to Australia, a market where they haven't faced trade barriers and sales have surged due to EV subsidies and tax benefits as well as high gasoline prices.
Since coming to power in 2022, Prime Minister Anthony Albanese's government has aggressively promoted EV adoption as part of the country's plans to cut down on emissions — a change that came after a decade of weak climate action under conservative leaders.
That's created a powerful tailwind for electric car demand. EVs accounted for 7.2% of Australian new car sales in 2023, up from 3.1% a year earlier.
While Tesla (NASDAQ:TSLA) too is greatly benefiting, it is the Chinese manufacturers in the non-premium end of the market which pose the biggest threat to incumbent automakers like Toyota (NYSE:TM) and Ford (NYSE:F) whose wide line-ups of gasoline-engine cars mean they have more to lose.
Last year, sales for EV giant BYD, which entered the market in 2022, climbed nearly six times to more than 12,000 vehicles. It now has 14% of Australia's EV market, second to Tesla which has 53%, data from the Federal Chamber of Automotive Industries shows.
«The opportunity is very clear,» said David Smitherman, chief executive at EVDirect, BYD's distributor in Australia.
«We need to now get into the mainstream market because we've sold to the early adopters and the passionate EV purchasers.»
BYD will add two SUVs and a pickup truck to take its product line-up in Australia to six this year, Smitherman said. EVDirect will also open 30 more dealerships in the next 18 months for total of a 55 and has embarked on fleet sales to companies like Uber (NYSE:UBER).
Chinese
Read more on investing.com
