Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens for the delivery of the clues of Xichang and Xiao Zhan-cut! CTOnews.com, June 13 (Xinhua)-- Li Ke, executive vice president of BYD, recently criticized the new US climate bill, the inflation reduction Act (IRA), saying it would make it more expensive for American consumers to buy electric cars, according to Bloomberg.

With regard to BYD's sales of electric cars in the US, she wanted to discuss growth plans in markets such as Mexico, Chile and Thailand, but made it very clear that "the US market is not under our current consideration".

The inflation reduction Act aims to promote the domestic electric vehicle manufacturing industry in the United States through tax breaks and financial support, excluding China from the electric vehicle supply chain in the United States, and its preference for American automakers and the supply chain. makes it too expensive and inappropriate for BYD to operate in the US passenger car market.

"We need to make sure that every step is successful," Li Ke said in an interview. "I firmly believe that IRA may slow down the popularity of electric vehicles in the United States," pointing out that IRA makes it impossible for American consumers to buy the most "affordable" options.

BYD was able to sell its electric cars at lower prices in part because of its advantage in batteries. In addition to being a car supplier, BYD is the world's second-largest battery maker. China has an absolute advantage in the supply chain of lithium needed for electric car batteries, while plans to increase capacity in the US are a long way off.

This means that US buyers will have to pay a premium for new energy vehicles because the cost of lithium batteries will rise. This price gap could eventually make the United States lag behind the rest of the world in terms of electric vehicle penetration, undermining the IRA's goal of tackling climate change.

Analysts including Morningstar and BlombergNEF say BYD is expected to eventually overtake Tesla to become the top seller of all-electric vehicles (excluding plug-in hybrids). Most experts believe that this shift will take place in the second half of the century.

Li Ke predicts that Latin America will become one of the company's largest expansion areas. "BYD hopes to increase the penetration of electric vehicles in Latin America from less than 2% to 10% to 20% in the next three to five years." Because of the negative impact of IRA, the penetration of electric vehicles in Latin America is likely to surpass that of the United States.

CTOnews.com notes that Li Ke is not the only one to point out problems with IRA. Michael Robinet, executive director of Sipp Global Mobility, said IRA is unlikely to help increase the popularity of electric vehicles because it does not change the "relative cost of electric vehicles," which is one of the biggest factors for Americans to choose gasoline-powered cars over electric vehicles.

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