The Executive Vice President and CEO of BYD Americas recently spoke with *Yahoo Finance* about the Chinese automaker’s position in the US and global electric vehicle (EV) markets. The VP cited complexities and a slowdown in the US EV market as reasons for BYD not currently planning to enter the country. Reports in late 2023 suggested a potential decrease in electric vehicle sales in the US for the following year. Some speculated that GM and Ford curtailed their EV production plans due to insufficient demand, while others argued that there is strong demand for EVs in the US, just not for the models offered by GM and Ford.
Factors such as interest rates were also mentioned as potential contributors to slow EV sales. Elon Musk, Tesla’s CEO, expressed concern over the high interest rate environment affecting car buyers in 2023. This sentiment was echoed by BYD’s VP, who highlighted the complexity of the market and the confusion it can cause for consumers when making purchasing decisions. The Biden Administration is working to establish an auto supply chain in the US and lessen dependence on China and other nations.
The Inflation Reduction Act (IRA) of 2022 aims to encourage companies to invest in North America and build supply chains within those parameters. However, as of now, any EVs with foreign components are not eligible for the IRA’s EV tax credits. As a result of the current political climate, BYD may not be considering entry into the US market at this time, but it is still active in South America and is reportedly considering investments in Mexico.