Korean Media: Electric Vehicle Giant BYD Expands Global Influence, This Time Targeting Canada!
On April 20, South Korean media outlet Today Digital published an article stating that Chinese electric vehicle company BYD is actively expanding into the North American and European markets. While considering building an EV factory in Canada, BYD has not ruled out the possibility of acquiring existing global automakers.
According to Bloomberg, BYD is exploring the potential of establishing a local production facility in the Canadian market. Li Ke, Vice President of BYD, said in an interview: "We are currently studying the Canadian market."
Naturally, BYD has not yet made a final decision on entering the Canadian market. However, the company has clearly stated that if it does build a factory, it would prefer a wholly-owned investment model over a joint venture model.
This could potentially conflict with Canadian policy. While Canada aims to attract Chinese auto manufacturers, it requires them to form joint ventures with domestic Canadian enterprises. Nevertheless, BYD insists on a wholly-owned investment model to maintain control over technology and production.
Canada has also adjusted its policy direction to some extent recently. Earlier this year, Canada decided to apply a most-favored-nation tariff rate of 6.1% to up to 49,000 electric vehicles imported from China, instead of the previous 100% tariffs, thus paving the way for Chinese companies to enter the Canadian market.
Beyond building factories from scratch, BYD is also considering acquiring existing automakers. Li Ke said: "There are no specific transactions currently underway, but we are evaluating various assets. If a merger or acquisition proves beneficial to our company, we will remain open-minded."
Examples of Chinese automakers acquiring global brands are already common. For instance, Geely acquired Volvo in 2010, significantly expanding its presence in the global automotive market.
BYD’s expansion strategy continues to advance in Europe. Currently, the company is constructing its first passenger vehicle manufacturing base in Hungary and is considering establishing a second production facility in Turkey. Additionally, reports indicate that the company is exploring the possibility of entering Formula 1 racing to further strengthen its brand image centered on technology.
Original source: toutiao.com/article/1862988527139848/
Disclaimer: The views expressed in this article are those of the author alone.