Amid rising tensions and the potential for increased trade barriers, William Li, founder of Chinese electric vehicle (EV) maker Nio, advocated for an open and competitive auto market in a speech at Harvard University on Saturday.
Li highlighted Tesla's (NASDAQ:TSLA) success in China, noting that Elon Musk's company has sold 1.36 million EVs in the past three years, energizing the local market and contributing to the growth of EV penetration.
Li’s comments come as the US and European Union have expressed concerns about the impact on their domestic markets of Chinese electric vehicle exports, which are believed to be supported by significant state subsidies, prompting investigations and discussions about potential tariffs on Chinese-made EVs.
The European Union is currently examining Chinese EV makers such as BYD, Geely and SAIC, which could lead to tariffs due to these subsidies. In the United States, few Chinese EVs are sold and those that are face high tariffs. BYD, China’s largest EV maker, has said it has no plans to enter the US market. Meanwhile, US President Joe Biden is reportedly considering raising tariffs on Chinese electric vehicles, and Senators Marco Rubio and Sherrod Brown have voiced concerns about the influx of cheap Chinese EVs and their impact on national security.
Despite these challenges, Li expressed confidence that China will not implement protectionist policies for domestic EV manufacturers, believing that an open market will ultimately benefit the industry and sustainability while strengthening the best companies.
Nio, which operates in the premium EV segment with a starting price of 298,000 yuan ($42,000), reported sales of 30,053 EVs in China in the first quarter, trailing Tesla’s 132,420. Li mentioned that Nio is evaluating the feasibility of entering the U.S. market on a quarterly basis. The exchange rate at the time of the report was $1 to 7.2371 Chinese yuan.
Source: Investing
