China’s Super-Cheap EVs Offer Hope for Average American Buyers
BYD’s sub-$10,000 Seagull electric car sets a new bar for global automakers, forcing Detroit to pivot toward cheaper rides.
Illustration: Yuki Murayama for Bloomberg Businessweek
No American car buyer today can purchase a Chinese brand’s electric vehicle. And no one is really sure when these EVs will arrive on US shores. But the prospect of cheap Chinese-made EVs is already causing sleepless nights in Detroit. The primary threat comes from cars such as BYD Co.’s Seagull hatchback, which features angular styling, a two-tone dashboard shaped like a seagull’s wing and six airbags. There’s even a 10-inch rotating touchscreen for its infotainment system. BYD’s company slogan, “Build Your Dreams,” is embossed on the rear of the vehicle.
The car’s most extraordinary feature, though, is its $9,698 price tag. That undercuts the average price of an American EV by more than $50,000 (and is only a little more than a high-end Vespa scooter). Such aggressive pricing by BYD, which surpassed Tesla Inc. in late 2023 to become the world’s largest producer of electric vehicles, is indicative of how Chinese auto manufacturers will likely force US makers to pivot away from mainly producing expensive second cars for the affluent and toward more reasonably priced EVs for the Everyman.